PACCAR Earnings: Here’s Why the Stock is Down Now

PACCAR Inc. (NASDAQ:PCAR) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.69%.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

PACCAR Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 26.37% to $0.67 in the quarter versus EPS of $0.91 in the year-earlier quarter.

Revenue: Decreased 23.98% to $3.63 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: PACCAR Inc. reported adjusted EPS income of $0.67 per share. By that measure, the company missed the mean analyst estimate of $0.68. It missed the average revenue estimate of $3.69 billion.

Quoting Management: “PACCAR reported good revenues and net income for the first quarter of 2013,” said Mark Pigott, chairman and chief executive officer. “PACCAR’s truck segment results compared to last year reflect a decline in industry truck sales in North America due to slower economic growth. PACCAR generated steady aftermarket parts and service business and strong PACCAR Financial Services performance. I am very proud of our 21,700 employees who have delivered industry leading products and services to our customers worldwide.”

Key Stats (on next page)…

Revenue decreased 24.32% from $4.8 billion in the previous quarter. EPS decreased 6.94% from $0.72 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.77 to a profit $0.76. For the current year, the average estimate has moved down from a profit of $3.22 to a profit of $3.17 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

More Articles About:   , , ,  

More from The Cheat Sheet