The 10-second takeaway
For the quarter ended Dec. 31 (Q4), PACCAR beat expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly, and GAAP earnings per share improved significantly.
Margins increased across the board.
PACCAR logged revenue of $4.59 billion. The 14 analysts polled by S&P Capital IQ wanted to see a top line of $4.21 billion. Sales were 59% higher than the prior-year quarter's $2.81 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.91. The 17 earnings estimates compiled by S&P Capital IQ predicted $0.80 per share on the same basis. GAAP EPS of $0.91 for Q4 were 98% higher than the prior-year quarter's $0.46 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 13.6%, 40 basis points better than the prior-year quarter. Operating margin was 9.6%, 200 basis points better than the prior-year quarter. Net margin was 6.8%, 120 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $3.87 billion. On the bottom line, the average EPS estimate is $0.76.
Next year's average estimate for revenue is $16.66 billion. The average EPS estimate is $3.37.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 641 members out of 689 rating the stock outperform, and 48 members rating it underperform. Among 233 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 221 give PACCAR a green thumbs-up, and 12 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on PACCAR is outperform, with an average price target of $50.94.
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