The 10-second takeaway
For the quarter ended June 30 (Q2), PACCAR missed slightly on revenue and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share grew significantly.
Margins grew across the board.
PACCAR chalked up revenue of $4.19 billion. The 13 analysts polled by S&P Capital IQ wanted to see a top line of $4.26 billion on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $3.96 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.83. The 17 earnings estimates compiled by S&P Capital IQ predicted $0.81 per share. GAAP EPS of $0.83 for Q2 were 28% higher than the prior-year quarter's $0.65 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 14.3%, 90 basis points better than the prior-year quarter. Operating margin was 9.9%, 120 basis points better than the prior-year quarter. Net margin was 6.7%, 60 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $4.00 billion. On the bottom line, the average EPS estimate is $0.77.
Next year's average estimate for revenue is $17.02 billion. The average EPS estimate is $3.33.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 633 members out of 681 rating the stock outperform, and 48 members rating it underperform. Among 193 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 181 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 $51.68.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of PACCAR. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.