(PCAR) - PACCAR, Inc. - topped the Street's estimate in 15 out of the past 16 quarters by an average margin of 15.0%

PACCAR, Inc. (PCAR), which was first presented as a Growth and Income pick on Jul 25, exceeded analysts' earnings expectations in 15 out of the past 16 quarters. The company recently reported record profits and revenues for the third quarter and for the first nine months of 2006. Consensus estimates for both 2006 and 2007 have been trending higher. This Zacks #1 Rank stock is currently yielding 1.3% and its return on equity of 32% crushes the industry average of 6%. Full Analysis PACCAR, Inc. designs, manufactures and distributes light, medium and heavy-duty trucks, which are used for over the road and off highway hauling of freight, petroleum, wood products, construction and other materials. The company also participates in the aftermarket distribution of parts worldwide and the manufacture of industrial winches. Finance and leasing services are also provided by PCAR to its customers and dealers. PCAR, which was first featured as a Growth and Income stock on Jul 25, is up nearly 16%. Since its debut, the company added two more earnings surprises to its nearly spotless history of exceeding analysts' earnings expectations. PCAR has now topped the Street's estimate in 15 out of the past 16 quarters by an average margin of 15.0%. In late July, the company was a Zacks #2 Rank stock (buy). It now holds the coveted status of a Zacks #1 Rank stock (strong buy). On Oct 24, PCAR reported third-quarter profits of $403.6 million, or $1.61 per share. This beat the Street's estimate of $1.50 by 7.3% and marked a new record for the company. The result also represented a 35.3% year-over-year improvement when compared to earnings of $1.19 achieved in the third quarter of 2005. Revenues jumped 18.9% to a record $4.21 billion, compared to $3.54 billion in the prior-year period. For the first nine months of the year, both profits and revenues hit all-time highs as well. Profits soared 36.5% to $1.12 billion, while revenues rose 17.4% to $12.23 billion when compared to the first nine months of 2005. PCAR increased revenues, expanded gross margins and grew profits for the past four years. Consensus estimates for both 2006 and 2007 have been trending higher. Profit forecasts for 2006 are up 2.5% over the past 60 days, while estimates for 2007 have risen 4.0% over the same period of time. Earnings per share are projected to grow 12% over the next 3-5 years. The industry's expected growth rate currently sits at 6%. During the third quarter, PCAR bought back 1.1 million of its common shares at a cost of $59.4 million. This effectively put an end to the company's five million share repurchase program. PCAR repurchased 10 million shares over the past two years. Vice Chairman Mike Tembreull stated, “PACCAR's profits and cash flow are excellent and the company's shares represent attractive long-term value.” The Board of Directors declared a quarterly cash dividend of 20 cents per share on Sep 12. The dividend is payable on Dec 5 to stockholders of record as of Nov 17. The company is currently yielding 1.3%. PCAR's return on equity is more than five times greater than that of the industry average—32% compared to 6%. 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| VitalStocks Home