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Paccar (PCAR) Down 1% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for Paccar (PCAR - Free Report) . Shares have lost about 1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Paccar due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
PACCAR Q1 Earnings Beat Estimates
PACCAR recorded earnings of $2.27 per share in the first quarter of 2024, which surpassed the Zacks Consensus Estimate of $2.17 per share and increased from $2.25 per share recorded in the year-ago period. Consolidated revenues (including trucks and financial services) came in at $8.74 billion, up from $8.47 billion in the corresponding quarter of 2023. Sales from Trucks, Parts and Others were $8.2 billion, which surpassed the Zacks Consensus Estimate of $8.08 billion.
Key Takeaways
Revenues from the Trucks segment totaled $6.54 billion in the first quarter, higher than the prior year quarter’s $6.41 billion and our estimate of $5.98 billion. Global truck deliveries came in at 48,100 units. The segment’s pre-tax income was $881.6 million, falling short of our estimate of $1 billion and decreasing 1.4% year over year.
Revenues from the Parts segment totaled $1.67 billion in the reported quarter, increasing from the year-earlier period’s $1.62 billion but missing our estimate of $1.69 billion. The segment’s pre-tax income came in at $455.8 million, up 4% on a year-over-year basis, marginally lagging our forecast of $457.2 million.
Revenues of the Financial Services segment came in at $509.3 million, outperforming the year-ago quarter’s $423.2 million and our estimate of $470.4 million. Pre-tax income decreased to $113 million from $148.8 million reported in the year-ago period and fell short of our projection of $152 million.
Other sales amounted to $18.1 million. Selling, general and administrative expenses in first-quarter 2024 decreased to $186.6 million from $195 million in the prior-year period. Research & development (R&D) expenses were $105.5 million compared with the year-earlier quarter’s $97.2 million.
PACCAR’s cash and marketable debt securities amounted to $7.72 billion as of Mar 31, 2024, compared with $8.66 million as of Dec 31, 2023.
The company declared a quarterly dividend of 27 cents per share.
Capex and R&D expenses for 2024 are envisioned in the band of $700-$750 million and $460-$500 million, respectively.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month.
VGM Scores
Currently, Paccar has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Paccar has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Paccar (PCAR) Down 1% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Paccar (PCAR - Free Report) . Shares have lost about 1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Paccar due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
PACCAR Q1 Earnings Beat Estimates
PACCAR recorded earnings of $2.27 per share in the first quarter of 2024, which surpassed the Zacks Consensus Estimate of $2.17 per share and increased from $2.25 per share recorded in the year-ago period. Consolidated revenues (including trucks and financial services) came in at $8.74 billion, up from $8.47 billion in the corresponding quarter of 2023. Sales from Trucks, Parts and Others were $8.2 billion, which surpassed the Zacks Consensus Estimate of $8.08 billion.
Key Takeaways
Revenues from the Trucks segment totaled $6.54 billion in the first quarter, higher than the prior year quarter’s $6.41 billion and our estimate of $5.98 billion. Global truck deliveries came in at 48,100 units. The segment’s pre-tax income was $881.6 million, falling short of our estimate of $1 billion and decreasing 1.4% year over year.
Revenues from the Parts segment totaled $1.67 billion in the reported quarter, increasing from the year-earlier period’s $1.62 billion but missing our estimate of $1.69 billion. The segment’s pre-tax income came in at $455.8 million, up 4% on a year-over-year basis, marginally lagging our forecast of $457.2 million.
Revenues of the Financial Services segment came in at $509.3 million, outperforming the year-ago quarter’s $423.2 million and our estimate of $470.4 million. Pre-tax income decreased to $113 million from $148.8 million reported in the year-ago period and fell short of our projection of $152 million.
Other sales amounted to $18.1 million. Selling, general and administrative expenses in first-quarter 2024 decreased to $186.6 million from $195 million in the prior-year period. Research & development (R&D) expenses were $105.5 million compared with the year-earlier quarter’s $97.2 million.
PACCAR’s cash and marketable debt securities amounted to $7.72 billion as of Mar 31, 2024, compared with $8.66 million as of Dec 31, 2023.
The company declared a quarterly dividend of 27 cents per share.
Capex and R&D expenses for 2024 are envisioned in the band of $700-$750 million and $460-$500 million, respectively.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month.
VGM Scores
Currently, Paccar has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Paccar has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.