The 10-second takeaway
For the quarter ended Dec. 31 (Q4), PACCAR met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share shrank significantly.
Margins shrank across the board.
PACCAR tallied revenue of $3.70 billion. The 16 analysts polled by S&P Capital IQ expected to see revenue of $3.66 billion on the same basis. GAAP reported sales were 18% lower than the prior-year quarter's $4.85 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 $0.69. The 20 earnings estimates compiled by S&P Capital IQ predicted $0.69 per share. GAAP EPS of $0.72 for Q4 were 21% lower than the prior-year quarter's $0.91 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 13.3%, 30 basis points worse than the prior-year quarter. Operating margin was 8.8%, 80 basis points worse than the prior-year quarter. Net margin was 6.3%, 50 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $3.74 billion. On the bottom line, the average EPS estimate is $0.73.
Next year's average estimate for revenue is $16.24 billion. The average EPS estimate is $3.25.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 625 members out of 675 rating the stock outperform, and 50 members rating it underperform. Among 235 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 221 give PACCAR a green thumbs-up, and 14 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 $47.21.
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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. The Motley Fool recommends Paccar. The Motley Fool owns 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.