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Paccar Third Quarter Earnings Preview
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PCAR
Paccar (Nasdaq:PCAR) will release its third quarter earnings on Thursday, October 25, 2012. Analysts have become increasingly bearish on the company over the last month, with the consensus analyst estimate slipping from 68 cents a share to the current prediction of earnings of 66 cents a share.
Investors should care about a company's quarterly earnings because it shows the state of the business over the past 90 days and provides guidance for the following 90 days. SEE: How To Decode A Company's Earnings Reports
What to Expect: The consensus estimate is down from three months ago when it was 78 cents. For the fiscal year, analysts are projecting earnings of $3.11 per share.
Paccar is expected to report revenue of $3.58 billion for the quarter, down by 15.9% from last year's figure of $4.26 billion. Revenue for the fiscal year is expected to come in at $16.2 billion.
Company Performance: Revenue increases have been in the double digits for the past four quarters. It has risen by an average of 44.1%, with the biggest increase of 67.4% coming in the third quarter of the last fiscal year.
PCAR's P/E ratio of 11.8 is above the industry average of 7.29. Usually, if a stock has a high P/E ratio, it indicates that the market expects the company to grow earnings quickly in the future. A company's price/earnings ratio (P/E ratio) provides a measure of how expensive or cheap a stock is. From the investor's perspective, a stock with a lower ratio is relatively cheaper than a stock with a higher ratio. SEE: Can Investors Trust the P/E Ratio?
The stock price has risen from $37.98 on July 24, 2012 to $40.41 over the past quarter. The stock saw one of its worst stretches when its price fell $2.12 per share between August 10, 2012 and September 5, 2012.
The Competition: PACCAR is a technology company that designs and manufactures light, medium, and heavy duty commercial trucks and related aftermarket parts. Nine of 16 analysts rate Paccar a hold. In the last three months, the number of buy ratings has increased slightly.
The company's closest competitor in the auto and truck manufacturers industry is Tata (TTM). Analysts are more optimistic about Paccar than about Tata. Only zero out of two analysts rate the latter a buy compared to six of 16 for the former.
Investors should care about a company's quarterly earnings because it shows the state of the business over the past 90 days and provides guidance for the following 90 days. SEE: How To Decode A Company's Earnings Reports
What to Expect: The consensus estimate is down from three months ago when it was 78 cents. For the fiscal year, analysts are projecting earnings of $3.11 per share.
Paccar is expected to report revenue of $3.58 billion for the quarter, down by 15.9% from last year's figure of $4.26 billion. Revenue for the fiscal year is expected to come in at $16.2 billion.
Company Performance: Revenue increases have been in the double digits for the past four quarters. It has risen by an average of 44.1%, with the biggest increase of 67.4% coming in the third quarter of the last fiscal year.
The stock price has risen from $37.98 on July 24, 2012 to $40.41 over the past quarter. The stock saw one of its worst stretches when its price fell $2.12 per share between August 10, 2012 and September 5, 2012.
The Competition: PACCAR is a technology company that designs and manufactures light, medium, and heavy duty commercial trucks and related aftermarket parts. Nine of 16 analysts rate Paccar a hold. In the last three months, the number of buy ratings has increased slightly.
The company's closest competitor in the auto and truck manufacturers industry is Tata (TTM). Analysts are more optimistic about Paccar than about Tata. Only zero out of two analysts rate the latter a buy compared to six of 16 for the former.
by
Investopedia Staff
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