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What's in the Cards for PACCAR (PCAR) This Earnings Season?
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PACCAR (PCAR - Free Report) is slated to release third-quarter 2022 results on Oct 25, before the market opens. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share and revenues is pegged at $2 and $6.75 billion, respectively.
For the current quarter, the consensus estimate for PACCAR’s earnings per share has remained constant in the past 30 days. Its bottom-line estimates imply growth of 85.2% from the year-ago reported number. The Zacks Consensus Estimate for its quarterly revenues suggests a year-over-year increase of 42.4%. Over the trailing four quarters, PACCAR surpassed earnings estimates on three occasions and missed once, with the average surprise being 7.44%. This is depicted in the graph below:
PACCAR topped the Zacks Consensus Estimate for earnings and revenues in second-quarter 2022. Its adjusted earnings per share of $2.07 surpassed the consensus metric of $1.81 and rose 45.7% year over year. Higher-than-expected pretax income from the Trucks and Parts segments resulted in the outperformance.
Earnings Whispers
Our proven model predicts an earnings beat for the trucking giant for the quarter to be reported, as it has the right combination of the two key ingredients. A combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: PACCAR has an Earnings ESP of +1.97%. This is because the Most Accurate Estimate is pegged 4 cents higher than the Zacks Consensus Estimate.
Zacks Rank: It currently carries a Zacks Rank of 3.
Robust demand from its Class 8 heavy-duty trucks is likely to have aided PACCAR’s trucking revenues in the to-be-reported quarter. Leading brands, namely Kenworth, DAF and Peterbilt, are poised to drive the deliveries. The consensus mark for total truck deliveries is 46,498 units, increasing from 32,800 units reported in the prior-year quarter. As such, the consensus mark for revenues from the Truck segment is $5,316 million, rising from $3,453 million recorded in the previous-year quarter. The pretax profit estimate in the segment is $385 million, significantly up from $79 million reported in the year-ago period.
The demand for aftermarket parts is on the rise, spurred by higher demand for environmentally sustainable vehicles. Owners are keen on adding modernized features to old cars, which is an important growth driver for PACCAR’s aftermarket parts segment. Continued growth in the aftermarket parts, which is a high margin and a less cyclic business, is likely to have aided the truck maker’s performance in the quarter to be reported.
Encouragingly, the Zacks Consensus Estimate for third-quarter revenues from the Parts segment is pegged at $1,430 million, indicating a rise from $1,260 million recorded in the previous-year quarter. The estimate for pretax profit in the segment, pegged at $353 million, also suggests an increase from $281 million.
On the flip side, the consensus mark for revenues from the Financial Services segment is $372 million, implying a fall from $409 million recorded in the previous-year quarter.
Other Stocks With Favorable Combination
Let’s take a look at some other players from the auto space, which, according to our model, have the right combination of elements to post an earnings beat for the quarter to be reported:
Oshkosh (OSK - Free Report) will release third-quarter 2022 results on Oct 27. The company has an Earnings ESP of +6.68% and a Zacks Rank #3.
The Zacks Consensus Estimate for Oshkosh’s to-be-reported quarter’s earnings and revenues is pegged at $1.13 per share and $2.14 billion, respectively. OSK surpassed earnings estimates in two of the trailing four quarters and missed in the rest, with the average surprise being a negative 13.62%.
Lear (LEA - Free Report) will release third-quarter 2022 results on Nov 1. The company has an Earnings ESP of +11.72% and a Zacks Rank #3.
The Zacks Consensus Estimate for Cummins’ to-be-reported quarter’s earnings and revenues is pegged at $2.15 per share and $5.18 billion, respectively. LEA surpassed earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 14.41%.
Cummins (CMI - Free Report) will release third-quarter 2022 results on Nov 3. The company has an Earnings ESP of +2.00% and a Zacks Rank #2.
The Zacks Consensus Estimate for Cummins’ to-be-reported quarter’s earnings and revenues is pegged at $4.85 per share and $6.87 billion, respectively. CMI surpassed earnings estimates in two of the trailing four quarters and missed twice, with the average surprise being 1.49%.
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What's in the Cards for PACCAR (PCAR) This Earnings Season?
PACCAR (PCAR - Free Report) is slated to release third-quarter 2022 results on Oct 25, before the market opens. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share and revenues is pegged at $2 and $6.75 billion, respectively.
For the current quarter, the consensus estimate for PACCAR’s earnings per share has remained constant in the past 30 days. Its bottom-line estimates imply growth of 85.2% from the year-ago reported number. The Zacks Consensus Estimate for its quarterly revenues suggests a year-over-year increase of 42.4%. Over the trailing four quarters, PACCAR surpassed earnings estimates on three occasions and missed once, with the average surprise being 7.44%. This is depicted in the graph below:
PACCAR Inc. Price and EPS Surprise
PACCAR Inc. price-eps-surprise | PACCAR Inc. Quote
Q2 Highlights
PACCAR topped the Zacks Consensus Estimate for earnings and revenues in second-quarter 2022. Its adjusted earnings per share of $2.07 surpassed the consensus metric of $1.81 and rose 45.7% year over year. Higher-than-expected pretax income from the Trucks and Parts segments resulted in the outperformance.
Earnings Whispers
Our proven model predicts an earnings beat for the trucking giant for the quarter to be reported, as it has the right combination of the two key ingredients. A combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: PACCAR has an Earnings ESP of +1.97%. This is because the Most Accurate Estimate is pegged 4 cents higher than the Zacks Consensus Estimate.
Zacks Rank: It currently carries a Zacks Rank of 3.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors at Play
Robust demand from its Class 8 heavy-duty trucks is likely to have aided PACCAR’s trucking revenues in the to-be-reported quarter. Leading brands, namely Kenworth, DAF and Peterbilt, are poised to drive the deliveries. The consensus mark for total truck deliveries is 46,498 units, increasing from 32,800 units reported in the prior-year quarter. As such, the consensus mark for revenues from the Truck segment is $5,316 million, rising from $3,453 million recorded in the previous-year quarter. The pretax profit estimate in the segment is $385 million, significantly up from $79 million reported in the year-ago period.
The demand for aftermarket parts is on the rise, spurred by higher demand for environmentally sustainable vehicles. Owners are keen on adding modernized features to old cars, which is an important growth driver for PACCAR’s aftermarket parts segment. Continued growth in the aftermarket parts, which is a high margin and a less cyclic business, is likely to have aided the truck maker’s performance in the quarter to be reported.
Encouragingly, the Zacks Consensus Estimate for third-quarter revenues from the Parts segment is pegged at $1,430 million, indicating a rise from $1,260 million recorded in the previous-year quarter. The estimate for pretax profit in the segment, pegged at $353 million, also suggests an increase from $281 million.
On the flip side, the consensus mark for revenues from the Financial Services segment is $372 million, implying a fall from $409 million recorded in the previous-year quarter.
Other Stocks With Favorable Combination
Let’s take a look at some other players from the auto space, which, according to our model, have the right combination of elements to post an earnings beat for the quarter to be reported:
Oshkosh (OSK - Free Report) will release third-quarter 2022 results on Oct 27. The company has an Earnings ESP of +6.68% and a Zacks Rank #3.
The Zacks Consensus Estimate for Oshkosh’s to-be-reported quarter’s earnings and revenues is pegged at $1.13 per share and $2.14 billion, respectively. OSK surpassed earnings estimates in two of the trailing four quarters and missed in the rest, with the average surprise being a negative 13.62%.
Lear (LEA - Free Report) will release third-quarter 2022 results on Nov 1. The company has an Earnings ESP of +11.72% and a Zacks Rank #3.
The Zacks Consensus Estimate for Cummins’ to-be-reported quarter’s earnings and revenues is pegged at $2.15 per share and $5.18 billion, respectively. LEA surpassed earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 14.41%.
Cummins (CMI - Free Report) will release third-quarter 2022 results on Nov 3. The company has an Earnings ESP of +2.00% and a Zacks Rank #2.
The Zacks Consensus Estimate for Cummins’ to-be-reported quarter’s earnings and revenues is pegged at $4.85 per share and $6.87 billion, respectively. CMI surpassed earnings estimates in two of the trailing four quarters and missed twice, with the average surprise being 1.49%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.