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PACCAR's (PCAR) Q3 Earnings & Sales Beat Estimates, Down Y/Y
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PACCAR Inc. (PCAR - Free Report) reported third-quarter 2020 net earnings per share of $1.11, surpassing the Zacks Consensus Estimate of earnings of 96 cents. This outperformance can be attributed to the rebounding global truck production and deliveries.
Markedly, higher-than-expected revenues from the trucks and parts segments resulted in this outperformance. Revenues from the trucks and parts segments came in at $3,504 million and $1,016 million, respectively, beating the Zacks Consensus Estimate of $3,429 million and $954 million. However, the earnings figure comes in lower than the prior-year quarter’s $1.75.
The trucking giant registered consolidated revenues (including trucks and financial services) of $4.94 billion, surpassing the Zacks Consensus Estimate of $4.24 billion. The top-line figure, however, comes in lower than the year-ago quarter’s $6.37 billion.
During the third quarter, the company recorded total pre-tax profit of $489.9 million, marking a decline from the prior-year quarter’s $777.6 million. The company’s net income fell to $385.5 million from the $607.9 million reported in third-quarter 2019.
Revenues from trucks, parts and others totaled $4,538.4 million in the July-September quarter, down from the prior-year quarter’s $6,004.2 million. The segment’s pre-tax income significantly plunged to $428 million from the $690 million recorded in the year-ago period. However, the figure beat the Zacks Consensus Estimate of $364 million.
Revenues in the financial services segment increased to $397.6 million from the year-earlier quarter’s $362.8 million. Nonetheless, pre-tax income declined to $55.5 million from the $66.5 million recorded in the year-earlier period. Meanwhile, the reported figure slightly outpaced the Zacks Consensus Estimate of $55 million.
Costs, Dividends & Cash Position
Selling, general and administrative expenses during third-quarter 2020 plunged 23.7% to $131.7 million from the $172.6 million incurred in third-quarter of 2019. Research & Development (R&D) expenses plummeted 21.3% to $64.7 million during the September-end quarter from the year-earlier quarter’s $82.2 million.
During reported quarter, PACCAR announced a regular quarterly cash dividend of 32 cents per share, payable on Dec 1, to stockholders of record as of Nov 10, 2020.
PACCAR’s cash and marketable debt securities amounted to $4,413.2 million as of Sep 30, 2020, compared with $5,169.4 million as of Dec 31, 2019.
Outlook
PACCAR has reiterated its capital expenditure (Capex) and R&D expenses projection for the ongoing year. Capex is now projected at $570-$600 million, and R&D expenses are estimated in the $270-$280 million band. The company estimates that it will invest $575-$625 million in capital projects and $330-$360 million in R&D expenses next year.
Zacks Rank & Other Stocks to Consider
PACCAR currently carries a Zacks Rank #2 (Buy). Shares of the company have appreciated 15.1%, year to date, significantly underperforming the industry’s rally of 140.2%.
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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PACCAR's (PCAR) Q3 Earnings & Sales Beat Estimates, Down Y/Y
PACCAR Inc. (PCAR - Free Report) reported third-quarter 2020 net earnings per share of $1.11, surpassing the Zacks Consensus Estimate of earnings of 96 cents. This outperformance can be attributed to the rebounding global truck production and deliveries.
Markedly, higher-than-expected revenues from the trucks and parts segments resulted in this outperformance. Revenues from the trucks and parts segments came in at $3,504 million and $1,016 million, respectively, beating the Zacks Consensus Estimate of $3,429 million and $954 million. However, the earnings figure comes in lower than the prior-year quarter’s $1.75.
The trucking giant registered consolidated revenues (including trucks and financial services) of $4.94 billion, surpassing the Zacks Consensus Estimate of $4.24 billion. The top-line figure, however, comes in lower than the year-ago quarter’s $6.37 billion.
During the third quarter, the company recorded total pre-tax profit of $489.9 million, marking a decline from the prior-year quarter’s $777.6 million. The company’s net income fell to $385.5 million from the $607.9 million reported in third-quarter 2019.
PACCAR Inc. Price, Consensus and EPS Surprise
PACCAR Inc. price-consensus-eps-surprise-chart | PACCAR Inc. Quote
Segmental Performance
Revenues from trucks, parts and others totaled $4,538.4 million in the July-September quarter, down from the prior-year quarter’s $6,004.2 million. The segment’s pre-tax income significantly plunged to $428 million from the $690 million recorded in the year-ago period. However, the figure beat the Zacks Consensus Estimate of $364 million.
Revenues in the financial services segment increased to $397.6 million from the year-earlier quarter’s $362.8 million. Nonetheless, pre-tax income declined to $55.5 million from the $66.5 million recorded in the year-earlier period. Meanwhile, the reported figure slightly outpaced the Zacks Consensus Estimate of $55 million.
Costs, Dividends & Cash Position
Selling, general and administrative expenses during third-quarter 2020 plunged 23.7% to $131.7 million from the $172.6 million incurred in third-quarter of 2019. Research & Development (R&D) expenses plummeted 21.3% to $64.7 million during the September-end quarter from the year-earlier quarter’s $82.2 million.
During reported quarter, PACCAR announced a regular quarterly cash dividend of 32 cents per share, payable on Dec 1, to stockholders of record as of Nov 10, 2020.
PACCAR’s cash and marketable debt securities amounted to $4,413.2 million as of Sep 30, 2020, compared with $5,169.4 million as of Dec 31, 2019.
Outlook
PACCAR has reiterated its capital expenditure (Capex) and R&D expenses projection for the ongoing year. Capex is now projected at $570-$600 million, and R&D expenses are estimated in the $270-$280 million band. The company estimates that it will invest $575-$625 million in capital projects and $330-$360 million in R&D expenses next year.
Zacks Rank & Other Stocks to Consider
PACCAR currently carries a Zacks Rank #2 (Buy). Shares of the company have appreciated 15.1%, year to date, significantly underperforming the industry’s rally of 140.2%.
Some other top-ranked stocks in the same industry include IAA Inc , Polaris Inc (PII - Free Report) and Ford Motor (F - Free Report) . Ford currently flaunts a Zacks Rank #1 (Strong Buy), while Polaris and IAA hold a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>