Morning Commentary: Navistar’s convertible bonds edge higher after positive quarterly results

By Stephanie N. Rotondo

Seattle, Sept. 8 – Navistar International Corp.’s 4.75% convertible notes due 2019 were in play early Friday as investors reacted well to the company’s Thursday earnings release.

One trader saw the notes in a 105 to 105.25 context. Another market source echoed that level, noting that it was up from 104.875 to 105.125 previously.

Navistar’s shares (NYSE: NAV) were only slightly better early Friday, trading up a nickel to $38.25.

On Thursday, the Lisle, Ill.-based heavy-duty truck and engine manufacturer reported its fiscal third-quarter results. The quarter produced net income of $37 million, or adjusted earnings per share of 37 cents.

Revenue was up 6% year over year at $2.21 billion.

Zacks Consensus Estimate was for adjusted EPS of 28 cents on revenue of $2.16 billion.

The profit marked the second time in the last 20 quarters that Navistar reported results that were in the black. In the same quarter of 2016, the company had posted a loss of $34 million.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.