PACCAR Earnings: Fifth Straight Quarter of Double-Digit Growth
S&P 500 (NYSE:SPY) component PACCAR Inc. (NASDAQ:PCAR) reported its results for the second quarter. PACCAR is a technology company that designs and manufactures light, medium, and heavy duty commercial trucks and related aftermarket parts.
Investing Insights: Is TV the Next Bullish Catalyst for Apple’s Stock?
PACCAR Inc. Earnings Cheat Sheet
Results: Net income for PACCAR Inc. rose to $297.2 million (83 cents per share) vs. $239.7 million (65 cents per share) in the same quarter a year earlier. This marks a rise of 24% from the year-earlier quarter.
Revenue: Rose 12.5% to $4.46 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: PACCAR Inc. beat the mean analyst estimate of 82 cents per share. It beat the average revenue estimate of $4.22 billion.
Quoting Management: “PACCAR reported increased revenues and net income for the second quarter of 2012,” said Mark Pigott, chairman and chief executive officer. “PACCAR’s second quarter results reflect the benefits of higher truck sales in North and South America and good financial services results worldwide as compared to the second quarter of 2011. The weak economic growth in the United States, coupled with the ongoing uncertainty in the Eurozone, could dampen truck orders for the remainder of 2012. I am very proud of our 23,000 employees who have delivered excellent results to our shareholders and customers.”
The company has seen double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 49%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose 67.4% from the year earlier quarter.
The company has now seen its net income increase for three consecutive quarters. In the first quarter, net income rose 69.3% and in the fourth quarter of the last fiscal year, the figure rose 93%.
The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by 11 cents in the first quarter, by 12 cents in the fourth quarter of the last fiscal year, and by 7 cents in the third quarter of the last fiscal year.
The company’s cost of sales rose 12.4% from a year earlier. Last quarter, cost of sales was 81.5% of revenue, similar to the prior-year quarter.
Looking Forward: Over the past sixty days, the outlook for the company’s performance next quarter has become increasingly unfavorable. The average estimate for the third quarter is 78 cents per share, a drop from 85 cents. For the fiscal year, the average estimate has moved down from $3.52 a share to $3.33 over the last sixty days.
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 provided by Xignite Financials. Earnings estimates provided by Zacks)
Don’t Miss These Hot Additional Stories: