PACCAR Inc. Second Quarter Earnings Preview

S&P 500 (NYSE:SPY) component PACCAR Inc. (NASDAQ:PCAR) will unveil its latest earnings on Tuesday, July 26, 2011. PACCAR Inc. is a technology company that designs and manufactures light, medium and heavy duty commercial trucks and related aftermarket parts. Ford Motor Company Second Quarter Earnings Sneak Peek>>

PACCAR Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 68 cents per share, a rise of more than twofold from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 67 cents. Between one and three months ago, the average estimate was unchanged, but has risen during the last month. For the year, analysts are projecting net income of $2.69 per share, a rise of more than twofold from last year.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the first quarter, it reported profit of 53 cents per share against a mean estimate of net income of 49 cents per share. In the fourth quarter of the last fiscal year, it missed forecasts by one cent.

Savvy Investing Tip: Our CHEAT SHEET investing framework recommends only stocks with two straight quarters of earnings growth. Learn More >>

Wall St. Revenue Expectations: On average, analysts predict $3.6 billion in revenue this quarter, a rise of 62.2% from the year ago quarter. Analysts are forecasting total revenue of $14.21 billion for the year, a rise of 52.3% from last year’s revenue of $9.33 billion.

Analyst Ratings: Analysts seem relatively indifferent about PACCAR with nine of 16 analysts surveyed maintaining a hold rating.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 35.8%, with the biggest boost coming in the most recent quarter when revenue rose 47.2% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose more than twofold while it rose more than threefold in the fourth quarter of the last fiscal year and 822.3% in the third quarter of the last fiscal year.

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).

Stock Price Performance: During April 25, 2011 to July 20, 2011, the stock price had fallen $2.64 (-5%) from $52.43 to $49.79. The stock price saw one of its best stretches over the last year between June 24, 2011 and July 1, 2011 when shares rose for six-straight days, rising 7.4% (+$3.59) over that span. It saw one of its worst periods between April 6, 2011 and April 14, 2011 when shares fell for seven-straight days, falling 5.4% (-$2.83) over that span. Shares are down $7.28 (-12.8%) year to date.

(Source: Xignite Financials)

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