PACCAR Inc Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component PACCAR Inc (NASDAQ:PCAR) will unveil its latest earnings on Tuesday, October 25, 2011. PACCAR is a technology company that designs and manufactures light, medium, and heavy duty commercial trucks and related aftermarket parts.

PACCAR Inc Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 70 cents per share, a rise of more than twofold from the company’s actual earnings for the same quarter a year ago. 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 111.3% versus last year to $2.62.

Past Earnings Performance: The company fell short of estimates last quarter after topping forecasts the quarter prior. In the second quarter, it reported profit of 65 cents per share against a mean estimate of 68 cents. Two quarters ago, it beat expectations by 4 cents with net income of 53 cents.

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Wall St. Revenue Expectations: On average, analysts predict $3.92 billion in revenue this quarter, a rise of 70.4% from the year ago quarter. Analysts are forecasting total revenue of $14.68 billion for the year, a rise of 57.3% from last year’s revenue of $9.33 billion.

Analyst Ratings: 10 out of 15 analysts surveyed (66.7%) have a buy rating on PACCAR.. This is below the mean analyst rating of eight competitors, which average 70.5% buy ratings. Over the past 90 days, the average rating for the stock has moved up from hold to moderate buy.

A Look Back: In the second quarter, profit rose more than twofold to $239.7 million (65 cents a share) from $99.6 million (27 cents a share) the year earlier, but fell short analyst expectations. Revenue rose 60.7% to $3.96 billion from $2.46 billion.

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 42.6%, with the biggest boost coming in the most recent quarter when revenue rose 60.7% from the year earlier quarter.

The company has seen net income rise in three straight quarters. Net income rose more than twofold in the first quarter and more than threefold in the fourth 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 September 21, 2011 to October 19, 2011, the stock price had risen $4.65 (13.1%) from $35.44 to $40.09. The stock price saw one of its best stretches over the last year between July 18, 2011 and July 25, 2011 when shares rose for six-straight days, rising 4.2% (+$2) over that span. It saw one of its worst periods between July 25, 2011 and August 4, 2011 when shares fell for nine-straight days, falling 22.6% (-$11.35) over that span. Shares are down $16.72 (-29.4%) year to date.

(Source: Xignite Financials)

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