Market Overview

Earnings Preview: PACCAR's EPS, Revenue Expected to Rise

PACCAR (NASDAQ: PCAR) releases its next round of earnings this Tuesday, October 25, 2011. Get the latest predictions in Benzinga's essential guide to the company's third quarter earnings report.

Earnings and Revenue:

Analysts are predicting an EPS reading of 70 cents/share and revenues of $3.92 billion. PACCAR's latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a profit of 33 cents/share on revenues of $2.3 billion. We'll know on Tuesday whether PACCAR has managed the estimated 112.1% increase in EPS and 70.4% rise in revenues on a year-over-year basis.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q2 Q1 Q4 Q3
EPS Estimate $0.68 $0.49 $0.46 $0.32
EPS Actual $0.65 $0.53 $0.45 $0.33

Stock Performance:

As of October 19, 2011, PACCAR's current share price was $40.09. Since January 1st, shares of PACCAR have declined 29.4%. For a full 12 months, the return has declined by 14.4%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

  • Long-term shareholders are already wary of 12-month losses prior to the announcement

Average Stock Rating:

The average rating by analysts for PACCAR is a Moderate Buy. This rating has strengthened over the past three months.

Competitors:

Wondering how PACCAR compares to rivals in the same sector? Here are a few of the company's peers.

  • Arctic Cat (NASDAQ: ACAT): Moderate Buy with a -$0.13 recent quarter EPS
  • Cummins (NYSE: CMI): Moderate Buy with a $2.41 recent quarter EPS
  • Federal Signal (NYSE: FSS): Hold with a $0.09 recent quarter EPS
  • Navistar International (NYSE: NAV): Moderate Buy with a $0.79 recent quarter EPS

The domestic automobiles company's industry has seen price/earnings growth of 0.6% during the current fiscal year.

Finally, a description of the company's main areas of operation: PACCAR is a technology company that designs and manufactures light, medium, and heavy duty commercial trucks and related aftermarket parts.

Take Action:

Now that you've gotten an advanced peak at PACCAR's upcoming earnings numbers, keep an eye out for any surprises in the report and be ready to take action. Also, check back in with us after the announcement for a full recap and a guide to your next steps.

  • To see up-to-date news on PACCAR, click here
  • To see other trading ideas, click here
  • To see other company earnings recaps, click here

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