Paccar Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Paccar (NASDAQ:PCAR) will unveil its latest earnings tomorrow, Thursday, January 31, 2013. PACCAR is a technology company that designs and manufactures light, medium, and heavy duty commercial trucks and related aftermarket parts.

Paccar Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 68 cents per share, a decline of 25.3% from the company’s actual earnings for the year-ago quarter. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 8% compared to last year’s $3.09.

Past Earnings Performance: The company met estimates last quarter after beating the forecasts in the prior two. In the third quarter, the company reported net income of 66 cents per share versus a mean estimate of profit of 66 cents per share. In the second quarter, the company beat estimates by one cent.

Start 2013 better than ever by saving time and making money with your Limited Time Offer for our highly-acclaimed Stock Picker Newsletter. Click here for our fresh Feature Stock Pick now!

Wall St. Revenue Expectations: Analysts are projecting a decline of 20.9% in revenue from the year-earlier quarter to $3.63 billion.

A Look Back: In the third quarter, profit fell 17% to $233.6 million (66 cents a share) from $281.6 million (77 cents a share) the year earlier, meeting analyst expectations. Revenue fell 16.7% to $3.55 billion from $4.26 billion.

Here’s how Paccar traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

pcar

Stock Price Performance: Between November 27, 2012 and January 25, 2013, the stock price had risen $5.06 (11.7%), from $43.17 to $48.23. The stock price saw one of its best stretches over the last year between November 14, 2012 and November 26, 2012, when shares rose for eight straight days, increasing 4.1% (+$1.70) over that span.

Key Stats:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 58.8% in the fourth quarter of the last fiscal year, 37.5% in the first quarter and 12.5%in the second quarter before dropping in the third quarter.

After last quarter’s profit drop broke a string of income increases, this earnings announcement is definitely a chance for a rebound. Net income rose 93% in the fourth quarter of the last fiscal year, 69.3% in the first quarter and 24% in the second quarter before declining in the third quarter.

Analyst Ratings: There are mostly holds on the stock with 11 of 18 analysts surveyed giving that rating.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.49 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations.

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 by Xignite Financials. Earnings estimates provided by Zacks)