The 10-second takeaway
For the quarter ended June 30 (Q2), PACCAR beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted. GAAP earnings per share shrank.
Gross margins dropped, operating margins were steady, net margins increased.
PACCAR chalked up revenue of $4.01 billion. The 16 analysts polled by S&P Capital IQ anticipated a top line of $3.95 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.82. The 19 earnings estimates compiled by S&P Capital IQ predicted $0.75 per share. GAAP EPS of $0.82 for Q2 were 1.2% lower than the prior-year quarter's $0.83 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 13.9%, 40 basis points worse than the prior-year quarter. Operating margin was 9.9%, much about the same as the prior-year quarter. Net margin was 6.8%, 10 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $4.10 billion. On the bottom line, the average EPS estimate is $0.82.
Next year's average estimate for revenue is $16.17 billion. The average EPS estimate is $3.15.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 619 members out of 669 rating the stock outperform, and 50 members rating it underperform. Among 221 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 208 give PACCAR a green thumbs-up, and 13 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 $50.95.
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