PACCAR Earnings: Snaps Strong Streak with Profit Drop
S&P 500 (NYSE:SPY) component PACCAR Inc. (NASDAQ:PCAR) reported its results for the third quarter. PACCAR is a technology company that designs and manufactures light, medium, and heavy duty commercial trucks and related aftermarket parts.
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PACCAR Inc. Earnings Cheat Sheet
Results: Net income for the domestic automobiles fell to $233.6 million (66 cents per share) vs. $281.6 million (77 cents per share) a year earlier. This is a decline of 17% from the year-earlier quarter.
Actual vs. Wall St. Expectations: PACCAR Inc. fell in line with the mean analyst estimate of 66 cents per share.
Quoting Management: “PACCAR reported good quarterly revenues and net income for the third quarter of 2012,” said Mark Pigott, chairman and chief executive officer. “PACCAR’s third quarter results reflect lower industry truck orders in North America and Europe due to the uneven global economy. PACCAR’s dealers and customers have benefited from good freight demand in North America and Europe as evidenced by strong aftermarket parts and services business and excellent PACCAR Financial Services performance. I am very proud of our 22,500 employees who have delivered industry-leading products and services to our customers worldwide.”
Last quarter’s profit decreases breaks a four-quarter run of profit increases. In the second quarter, net income rose 24% from the year earlier, while the figure increased 69.3% in the first quarter, 93% in the fourth quarter of the last fiscal year and more than twofold in the third quarter of the last fiscal year.
The company fell in line with estimates last quarter after beating expectations in the previous two quarters. In the second quarter, it topped the mark by one cent, and in the first quarter, it was ahead by 11 cents.
Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the fourth quarter is 71 cents per share, down from 77 cents ninety days ago. For the fiscal year, the average estimate has moved down from $3.24 a share to $3.11 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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