(PCAR) - PACCAR, Inc. - history of exceeding analysts estimates in 15 out of the past 16 quarters by an average margin of 18.0%

PACCAR, Inc. (PCAR) topped the Street's earnings estimate in 15 out of the past 16 quarters. The company increased revenues, expanded gross margins and grew profits for the past four years. Earnings per share are projected to grow 13% over the next 3-5 years. PCAR's quarterly dividend was raised 20% to 30 cents per share back in late-April. The company is currently yielding 1.6%. Full Analysis PACCAR, Inc. designs, manufactures and distributes light, medium and heavy-duty trucks, under the Kenworth, Peterbilt, DAF and Foden nameplates. The company also participates in the aftermarket distribution of parts worldwide and the manufacture of industrial winches. PCAR has a very strong history of exceeding analysts' earnings expectations, having done so in 15 out of the past 16 quarters by an average margin of 18.0%. Earnings per share are projected to grow 13% over the next 3-5 years, easily surpassing the 6% expected growth rate for the industry. On Apr 25, 2006, PCAR reported first-quarter profits of $342 million, or $2.02 per share, compared to $274 million, or $1.56 per share in the prior-year period. The Street was calling for $1.85, resulting in a 9.2% positive earnings surprise for the company. Revenues grew 15.6% to $3.85 billion. The company is expected to release results for the second quarter today. The Board of Directors declared a 50% stock dividend of PCAR's common stock on Jul 11, 2006, with the new shares to be issued on Aug 10, 2006, to stockholders of record as of Jul 27, 2006. Furthermore, the Board approved a quarterly cash dividend in the amount of 20 cents on each newly-split share. The company's regular quarterly dividend was raised 20% to 30 cents per share back in late-April. PCAR is currently yielding 1.6% and has a five-year average dividend yield of 1.5%. On Jun 1, 2006, PCAR was selected by Industry Week magazine as one of the 50 best manufacturing companies in the United States. In order to qualify, companies must possess impressive three-year performance numbers, including revenue growth, profit margin, asset turnover, inventory turns, return on assets and return on equity. The consensus estimate for this quarter currently sits at $2.08. This marks a 7.2% improvement when compared to the consensus of 90 days ago. Three analysts upped their profit forecasts. For the entire year, analysts are calling for earnings per share of $8.22—an 8.9% jump over the past three months. Three analysts revised their estimates upward. PCAR increased revenues, expanded gross margins and grew profits for the past four years. The company's return on equity of 32% is more than five times greater than that of the industry average. PCAR is a Zacks #2 Rank (Buy) stock. Zacks #2 Rank stocks have generated an average annual return of 22.0% since 1988. Because the Zacks Rank has a market cap bias, Growth & Income investors may find a greater number of large-cap stocks by considering both Zacks #1 Rank (Strong Buy) and Zacks #2 Rank (Buy) stocks in their selection criteria. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. Blog Home