PACCAR Inc. Earnings Cheat Sheet: Double-Digit Growth Again

S&P 500 (NYSE:SPY) component PACCAR Inc. (NASDAQ:PCAR) reported net income above Wall Street’s expectations for the third quarter. PACCAR is a technology company that designs and manufactures light, medium, and heavy duty commercial trucks and related aftermarket parts.

Investing Insights: has a Stock Chart Technical Analysts Dream About.

PACCAR Earnings Cheat Sheet for the Third Quarter

Results: Net income for PACCAR Inc. rose to $281.6 million (77 cents per share) vs. $119.9 million (33 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year earlier quarter.

Revenue: Rose 67.6% to $4.26 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: PCAR beat the mean analyst estimate of 70 cents per share. It beat the average revenue estimate of $3.92 billion.

Quoting Management: “PACCAR reported strong quarterly revenues and net income for the third quarter of 2011. PACCAR’s third quarter revenues of $4.26 billion were the highest quarterly revenues in company history,” said Mark Pigott, chairman and chief executive officer. “Increased truck deliveries, higher aftermarket sales and a growing financial services business worldwide contributed to increased profits. Our customers in North America are benefiting from increased freight tonnage and higher fleet utilization which are driving the replacement of their aging fleets, resulting in increased demand for PACCAR products and services.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 47.6%, with the biggest boost coming in the most recent quarter when revenue rose 67.6% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose more than twofold and in the first quarter, the figure rose more than twofold.

The company topped expectations last quarter after falling short of forecasts in the second quarter with net income of 65 cents versus a mean estimate of net income of 68 cents per share.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from 77 cents a share to 75 cents over the last ninety days. For the fiscal year, the average estimate has moved down from $2.70 a share to $2.63 over the last ninety days.

Competitors to Watch: Navistar Intl. Corp. (NYSE:NAV), Wabash National Corp. (NYSE:WNC), Federal Signal Corporation (NYSE:FSS), Arctic Cat Inc. (NASDAQ:ACAT), Ford (NYSE:F), General Motors (NYSE:GM), Toyota (NYSE:TM), Cummins Inc. (NYSE:CMI), and Tata Motors Limited (NYSE:TTM).

Investing Insights: has a Stock Chart Technical Analysts Dream About.

(Source: Xignite Financials)