Navistar Shares Popped: What You Need to Know

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of vehicle manufacturer Navistar (NYS: NAV) are at risk of getting a speeding ticket today, with shares zooming higher by as much as 11%, after the company reported the best annual results in years.

So what: Fourth-quarter revenue added up to $4.3 billion, with earnings per share of $3.37. The figures were mixed compared to the consensus estimates of $4.45 billion in sales and $3.08 per share in profit. The full fiscal year posted the best earnings since 2008.

Now what: The fourth quarter marked increases in worldwide unit charge-outs in North American and global businesses. Throughout the year, Navistar also repurchased roughly 2.7 million shares of its stock, and is on track to finish out its $175-million stock-repurchase program in early 2012. Navistar CEO Dan Ustian also hinted that the company may collaborate with rival Oshkosh (NYS: OSK) , saying that it "might be beneficial for everybody." Activist investor Carl Icahn has sizable stakes in both companies and has been pushing for a tie-up.

Interested in more info on Navistar? Add it to your watchlist byclicking here.

At the time this article was published Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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