StockCall Study on Wabash and PACCAR: Truck Makers go for LNG Vehicles
LONDON, February 25, 2013
LONDON, February 25, 2013 /PRNewswire/ --
Truck industry still feels the general economic headwinds. Despite improvement
in macro and micro factors, the sector is still a little sluggish as shown by
the latest earning reports made by the companies operating in the segment.
Wabash National Corp. (NYSE: WNC) reported lower-than-expected revenue for the
fourth quarter. Similarly, PACCAR Inc. (NASDAQ: PCAR) also reported lower
revenue and Earnings per share. The sector is expected to improve on account
of better economy and demand level. It is also trying to bank on the lower LNG
prices by introducing new Natural Gas based models. StockCall free coverage on
Wabash National and PACCAR Inc. is available upon registration at
PACCAR Inc. Reports Q4 Results
PACCAR Inc. declared 20 cents per share in dividend, raising its dividend
yield to 1.71 percent. The company also recently announced its fourth quarter
results. While its revenue surpassed the expectations, the company still
lagged behind its past year's performance. Its revenue stood at $3.70 billion,
beating analysts' expectations of $3.66, but 18 percent lower than $4.85
billion in revenue it had reported for the corresponding quarter of the last
year. Similarly, its EPS also declined 21 percent to 69 cents per share,
in-line with consensus estimates. However, its stock has performed better so
far this year, up 3.65 percent. Register now and get access to the free
analysis on PACCAR Inc. at
For its future guidance, the company expects its gross margin to decline
marginally in comparison to the fourth quarter. While, the outlook may seem a
little disappointing, the company stock itself is performing better than the
previous year and recently hit its 52-week high. Going forward, the company is
likely to benefit from a proposed one year extension to the accelerated
depreciation program. The program allows the companies to deduct up to 50
percent of the cost of capital expenditure from their federal tax bill.
PACCAR Inc. holds a leadership position on heavy duty truck industry. The
company has added new energy efficient trucks to its fleet which may help the
company to increase its revenue and improve profitability.
Wabash National Corp. Announced Higher Margins
Wabash National Corp. announced its fourth quarter revenue at $415.8 million,
22 percent higher than its previous year quarter's revenue of $341.7 million.
However, it fell short of consensus estimate of $426.4 million in sales. The
company reported massive increase in its EPS from 11 cents per share to 32
cents per share. It also surpassed analysts' expectations of 31 cents per
share in net income. Download the free technical research on Wabash National
Corp. by signing up at
The main point of the company's earnings report was related to its overall
margins, which showed considerable improvement. The company expects its first
quarter revenue to be at $414.8 million and its EPS to be at 26 cents per
share. Wabash National's stock is up 8 percent on a YTD basis and is expected
to perform well as the company provided rosy outlook.
Wabash National Corp. also shows good growth prospects as the company
consolidates its position in the sector. It recently purchased some assets
from Beall. The company is going through Chapter 11 bankruptcy proceedings and
the deal is estimated to be worth $15 million. Wabash National Corp. will add
these assets to its Walker Transport and Brenner Tank lines.
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