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PACCAR's (PCAR) Q2 Pre-Tax Profit From Trucks Unit Lags Estimates
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PACCAR Inc. (PCAR - Free Report) recorded earnings of $2.13 per share for the second quarter of 2024, which lagged the Zacks Consensus Estimate of $2.15 per share and also declined from $2.33 per share recorded in the year-ago period. The underperformance mainly stemmed from lower pretax profit from the Trucks and Financial Services segment.
Consolidated revenues (including trucks and financial services) came in at $8.77 billion, down from $8.88 billion in the corresponding quarter of 2023. Sales from Trucks, Parts and Others were $8.26 billion.
Revenues from the Trucks segment totaled $6.57 billion in the second quarter, lower than the prior-year quarter’s $6.8 billion but topped our estimate of $6.54 billion. Global truck deliveries came in at 48,000 units, higher than our projection of 47,826 units. The segment’s pre-tax income was $837.3 million, which fell short of our estimate of $846.2 million and decreased 11.6% year over year.
Revenues from the Parts segment totaled $1.66 billion in the reported quarter, increasing from the year-earlier period’s $1.59 billion. Our estimate was $1.68 billion. The segment’s pre-tax income came in at $413.8 million, down from $419.3 reported in the year-ago period. The metric, however, topped our forecast of $384.8 million.
Financial Services segment revenues came in at $509.8 million, higher than the year-ago quarter’s $439.8 million and our estimate of $507.5 million. Pre-tax income decreased to $111.2 million from $144.7 million reported in the year-ago period and also fell short of our projection of $142.3 million.
Other sales amounted to $20.2 million. Selling, general and administrative expenses in second-quarter 2024 inched up to $183.5 million from $181.9 million in the prior-year period. Research & development (R&D) expenses were $117.1 million compared with the year-earlier quarter’s $101.3 million.
PACCAR’s cash and marketable debt securities amounted to $7.8 billion as of Jun 30, 2024, compared with $8.66 million as of Dec 31, 2023.
The company declared a quarterly dividend of 30 cents per share, to be paid on Sep 5 to shareholders as of Aug 15.
Capex and R&D expenses for 2024 are envisioned in the band of $725-$775 million and $460-$500 million, respectively.
Zacks Rank & Key Picks
PACCAR currently carries a Zacks Rank #4 (Sell).
Better-ranked players in the auto market include Honda (HMC - Free Report) , Allison Transmission (ALSN - Free Report) and BorgWarner (BWA - Free Report) . While HMC sports a Zacks Rank #1 (Strong Buy), ALSN and BWA carry a Zacks Rank #2 (Buy) each.
The Zacks Consensus Estimate for HMC’s fiscal 2025 and 2026 EPS has moved up by 4 cents each in the past seven days. The Japanese auto biggie surpassed earnings estimates in the trailing four quarters, with the average surprise being 66.6%.
The Zacks Consensus Estimate for ALSN’s 2024 and 2025 EPS implies a year-over-year uptick of 4% and 12.5%, respectively. The automotive equipment supplier surpassed earnings estimates in the trailing four quarters, with the average surprise being 14.3%.
The Zacks Consensus Estimate for BWA’s 2024 and 2025 EPS implies a year-over-year increase of 8% and 14.6%, respectively. The automotive equipment supplier surpassed earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 10.3%.
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PACCAR's (PCAR) Q2 Pre-Tax Profit From Trucks Unit Lags Estimates
PACCAR Inc. (PCAR - Free Report) recorded earnings of $2.13 per share for the second quarter of 2024, which lagged the Zacks Consensus Estimate of $2.15 per share and also declined from $2.33 per share recorded in the year-ago period. The underperformance mainly stemmed from lower pretax profit from the Trucks and Financial Services segment.
Consolidated revenues (including trucks and financial services) came in at $8.77 billion, down from $8.88 billion in the corresponding quarter of 2023. Sales from Trucks, Parts and Others were $8.26 billion.
PACCAR Inc. Price, Consensus and EPS Surprise
PACCAR Inc. price-consensus-eps-surprise-chart | PACCAR Inc. Quote
Key Takeaways
Revenues from the Trucks segment totaled $6.57 billion in the second quarter, lower than the prior-year quarter’s $6.8 billion but topped our estimate of $6.54 billion. Global truck deliveries came in at 48,000 units, higher than our projection of 47,826 units. The segment’s pre-tax income was $837.3 million, which fell short of our estimate of $846.2 million and decreased 11.6% year over year.
Revenues from the Parts segment totaled $1.66 billion in the reported quarter, increasing from the year-earlier period’s $1.59 billion. Our estimate was $1.68 billion. The segment’s pre-tax income came in at $413.8 million, down from $419.3 reported in the year-ago period. The metric, however, topped our forecast of $384.8 million.
Financial Services segment revenues came in at $509.8 million, higher than the year-ago quarter’s $439.8 million and our estimate of $507.5 million. Pre-tax income decreased to $111.2 million from $144.7 million reported in the year-ago period and also fell short of our projection of $142.3 million.
Other sales amounted to $20.2 million. Selling, general and administrative expenses in second-quarter 2024 inched up to $183.5 million from $181.9 million in the prior-year period. Research & development (R&D) expenses were $117.1 million compared with the year-earlier quarter’s $101.3 million.
PACCAR’s cash and marketable debt securities amounted to $7.8 billion as of Jun 30, 2024, compared with $8.66 million as of Dec 31, 2023.
The company declared a quarterly dividend of 30 cents per share, to be paid on Sep 5 to shareholders as of Aug 15.
Capex and R&D expenses for 2024 are envisioned in the band of $725-$775 million and $460-$500 million, respectively.
Zacks Rank & Key Picks
PACCAR currently carries a Zacks Rank #4 (Sell).
Better-ranked players in the auto market include Honda (HMC - Free Report) , Allison Transmission (ALSN - Free Report) and BorgWarner (BWA - Free Report) . While HMC sports a Zacks Rank #1 (Strong Buy), ALSN and BWA carry a Zacks Rank #2 (Buy) each.
The Zacks Consensus Estimate for HMC’s fiscal 2025 and 2026 EPS has moved up by 4 cents each in the past seven days. The Japanese auto biggie surpassed earnings estimates in the trailing four quarters, with the average surprise being 66.6%.
The Zacks Consensus Estimate for ALSN’s 2024 and 2025 EPS implies a year-over-year uptick of 4% and 12.5%, respectively. The automotive equipment supplier surpassed earnings estimates in the trailing four quarters, with the average surprise being 14.3%.
The Zacks Consensus Estimate for BWA’s 2024 and 2025 EPS implies a year-over-year increase of 8% and 14.6%, respectively. The automotive equipment supplier surpassed earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 10.3%.
You can see the complete list of today’s Zacks #1 Rank stocks here.