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PACCAR Saw Revenues Trucking Along in 2Q16

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Price movement

PACCAR (PCAR) has a market cap of $20.3 billion. It rose by 4.4% to close at $58.36 per share on July 26, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 8.8%, 12.3%, and 24.2%, respectively, on the same day. PCAR is trading 10.7% above its 20-day moving average, 7.8% above its 50-day moving average, and 13.1% above its 200-day moving average.

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Related ETF and peers

The First Trust NASDAQ-100 Ex-Technology Sector Index ETF (QQXT) invests 1.7% of its holdings in PACCAR. The ETF tracks an equal-weighted index of NASDAQ-100 stocks that excludes technology companies. The YTD price movement of QQXT was -0.65% on July 26.

The market caps of PACCAR’s competitors are as follows:

  • Cummins (CMI): $20.8 billion
  • CNH Industrial (CNHI): $9.8 billion
  • Penske Automotive Group (PAG): $3.1 billion

Performance of PACCAR in fiscal 2Q16

PACCAR reported 2Q16 truck, parts, and other net sales and revenues of $4.1 billion, a fall of 14.6% from the $4.8 billion in 2Q15. It reported a European commission charge of $109.6 million in 2Q16.

Financial services revenue rose to $297.4 million in 2Q16, a rise of 1.2% from 2Q15. Its net income and EPS (earnings per share) rose to $481.3 million and $1.37, respectively, in 2Q16, compared with $447.2 million and $1.26, respectively, in 2Q15. It reported adjusted EPS of $1.06 in 2Q16.

PACCAR’s cash and marketable debt securities and inventories rose by 0.57% and 3.6%, respectively, between 4Q15 and 2Q16. Its debt-to-equity ratio rose to 2.2x in 2Q16, compared with 2.0x in 4Q15.

Quarterly dividends

PACCAR has declared a quarterly cash dividend of $0.24 per share on its common stock. The dividend will be paid on September 2, 2016, to shareholders of record at the close of business on August 12, 2016. In the next and final part of this series, we’ll discuss Avery Dennison.

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