The 10-second takeaway
For the quarter ended March 31 (Q1), PACCAR missed slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly. GAAP earnings per share contracted significantly.
Margins dropped across the board.
PACCAR logged revenue of $3.63 billion. The 15 analysts polled by S&P Capital IQ hoped for a top line of $3.70 billion on the same basis. GAAP reported sales were 18% lower than the prior-year quarter's $4.78 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 $0.67. The 19 earnings estimates compiled by S&P Capital IQ forecast $0.69 per share. GAAP EPS of $0.67 for Q1 were 26% 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%, 60 basis points worse than the prior-year quarter. Operating margin was 8.5%, 130 basis points worse than the prior-year quarter. Net margin was 6.0%, 90 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $3.96 billion. On the bottom line, the average EPS estimate is $0.77.
Next year's average estimate for revenue is $16.19 billion. The average EPS estimate is $3.19.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 622 members out of 672 rating the stock outperform, and 50 members rating it underperform. Among 219 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 205 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 $49.95.
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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.