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Why Is Paccar (PCAR) Down 2.9% Since Last Earnings Report?
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It has been about a month since the last earnings report for Paccar (PCAR - Free Report) . Shares have lost about 2.9% 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 the most recent earnings report in order to get a better handle on the important drivers.
PACCAR Q2 Earnings Beat Estimates
PACCAR 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.
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-$480 million, respectively.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -8.55% due to these changes.
VGM Scores
At this time, Paccar has a subpar Growth Score of D, a grade with the same score on the momentum front. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, 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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Why Is Paccar (PCAR) Down 2.9% Since Last Earnings Report?
It has been about a month since the last earnings report for Paccar (PCAR - Free Report) . Shares have lost about 2.9% 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 the most recent earnings report in order to get a better handle on the important drivers.
PACCAR Q2 Earnings Beat Estimates
PACCAR 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.
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-$480 million, respectively.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -8.55% due to these changes.
VGM Scores
At this time, Paccar has a subpar Growth Score of D, a grade with the same score on the momentum front. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Paccar has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.