S&P 500 (NYSE:SPY) component Paccar (NASDAQ:PCAR) will unveil its latest earnings on Thursday, October 25, 2012. 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 net income of 66 cents per share, a decline of 14.3% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 78 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 68 cents during the last month. For the year, analysts are projecting profit of $3.11 per share, a rise of 8.7% from last year.
Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by one cent, reporting net income of 83 cents per share against a mean estimate of profit of 82 cents per share.
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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. The company regressed in this liquidity measure from 1.17 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased more than twofold to $10.19 billion while assets rose 3.3% to $4.95 billion.
A Look Back: In the second quarter, profit rose 24% to $297.2 million (83 cents a share) from $239.7 million (65 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 12.5% to $4.46 billion from $3.96 billion.
Wall St. Revenue Expectations: Analysts predict a decline of 10.3% in revenue from the year-earlier quarter to $3.58 billion.
With double-digit revenue growth the past four quarters, this earnings release is a chance to keep that positive trend going. The company has averaged year-over-year revenue growth of 44.1% over the last four quarters.
After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 93% in the fourth quarter of the last fiscal year and 69.3% in the first quarter before increasing again in the second quarter.
Stock Price Performance: Between July 26, 2012 and October 19, 2012, the stock price rose $1.77 (4.6%), from $38.63 to $40.41. The stock price saw one of its best stretches over the last year between January 6, 2012 and January 19, 2012, when shares rose for nine straight days, increasing 9.4% (+$3.77) over that span. It saw one of its worst periods between November 11, 2011 and November 23, 2011 when shares fell for nine straight days, dropping 13.2% (-$5.61) over that span.
Analyst Ratings: There are mostly holds on the stock with nine of 16 analysts surveyed giving that rating.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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