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Another Beat in Store for PACCAR (PCAR) This Earnings Season?
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PACCAR (PCAR - Free Report) is slated to release fourth-quarter 2022 results on Jan 24, before market open. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share and revenues is pegged at $2.23 and $7 billion, respectively.
For the current quarter, the consensus estimate for PACCAR’s earnings per share has moved up by a penny in the past seven days. Its bottom-line estimates imply growth of 51.7% from the year-ago reported number. The Zacks Consensus Estimate for its quarterly revenues suggests a year-over-year increase of 11.1%. Over the trailing four quarters, PACCAR surpassed earnings estimates on all occasions, with the average surprise being 12.6%. This is depicted in the graph below:
PACCAR topped the Zacks Consensus Estimate for earnings and revenues in third-quarter 2022. Its adjusted earnings per share of $2.21 surpassed the consensus metric of $2.01 and rocketed 109% year over year. Higher-than-expected pretax income from the Trucks, Parts and Financial segments resulted in the outperformance.
Consolidated revenues (including trucks and financial services) came in at $7,059 billion, up from $5,146.8 million recorded in the corresponding quarter of 2021. Sales from Trucks, Parts and Others were $6,687 million, which marginally missed the consensus mark of $6,692 million.
Earnings Whispers
Our proven model predicts an earnings beat for the trucking giant in the quarter to be reported, as it has the right combination of the two key ingredients. The 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 +1.63%. This is because the Most Accurate Estimate is pegged 3 cents higher than the Zacks Consensus Estimate.
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 likely to have driven the deliveries.The new DAF lineup has improved the company’s product mix. The consensus mark for total truck deliveries is 47,805 units, increasing from 47,600 units reported in the prior-year quarter. The consensus mark for revenues from the Truck segment is $5,515 million, indicating a rise from $4,962 million recorded in the previous-year quarter. The pretax profit estimate for the segment is $488 million, significantly up from $193 million reported in the year-ago period.
The demand for aftermarket parts is on the rise, spurred by high truck utilization and increased average fleet age. Encouragingly, the Zacks Consensus Estimate for fourth-quarter revenues from the Parts segment is pegged at $1,439 million, indicating a rise from $1,312 million recorded in the previous-year quarter. The estimate for pretax profit of the segment, pegged at $372 million, also suggests an increase from $306 million.
Meanwhile, the consensus mark for revenues from the Financial Services segment is $374 million, implying a slight decline from $390 million recorded in the previous-year quarter.
Other Stocks With Favorable Combination
Let’s take a look at a couple of 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:
Lear (LEA - Free Report) will release fourth-quarter 2022 results on Feb 2. The company has an Earnings ESP of +4.29% and a Zacks Rank #3.
The Zacks Consensus Estimate for Lear’s to-be-reported quarter’s earnings and revenues is pegged at $2.53 per share and $5.26 billion, respectively. LEA surpassed earnings estimates in the trailing four quarters, with the average surprise being 18%.
Harley-Davidson (HOG - Free Report) is expected to report fourth-quarter 2022 results by mid-February. The company has an Earnings ESP of +300.00% and a Zacks Rank #1.
The Zacks Consensus Estimate for Harley-Davidson’s to-be-reported quarter’s earnings and revenues is pegged at 3 cents per share and $880.5 million, respectively. HOG surpassed earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 43.3%.
Image: Bigstock
Another Beat in Store for PACCAR (PCAR) This Earnings Season?
PACCAR (PCAR - Free Report) is slated to release fourth-quarter 2022 results on Jan 24, before market open. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share and revenues is pegged at $2.23 and $7 billion, respectively.
For the current quarter, the consensus estimate for PACCAR’s earnings per share has moved up by a penny in the past seven days. Its bottom-line estimates imply growth of 51.7% from the year-ago reported number. The Zacks Consensus Estimate for its quarterly revenues suggests a year-over-year increase of 11.1%. Over the trailing four quarters, PACCAR surpassed earnings estimates on all occasions, with the average surprise being 12.6%. This is depicted in the graph below:
PACCAR Inc. Price and EPS Surprise
PACCAR Inc. price-eps-surprise | PACCAR Inc. Quote
Q3 Highlights
PACCAR topped the Zacks Consensus Estimate for earnings and revenues in third-quarter 2022. Its adjusted earnings per share of $2.21 surpassed the consensus metric of $2.01 and rocketed 109% year over year. Higher-than-expected pretax income from the Trucks, Parts and Financial segments resulted in the outperformance.
Consolidated revenues (including trucks and financial services) came in at $7,059 billion, up from $5,146.8 million recorded in the corresponding quarter of 2021. Sales from Trucks, Parts and Others were $6,687 million, which marginally missed the consensus mark of $6,692 million.
Earnings Whispers
Our proven model predicts an earnings beat for the trucking giant in the quarter to be reported, as it has the right combination of the two key ingredients. The 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 +1.63%. This is because the Most Accurate Estimate is pegged 3 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 likely to have driven the deliveries.The new DAF lineup has improved the company’s product mix. The consensus mark for total truck deliveries is 47,805 units, increasing from 47,600 units reported in the prior-year quarter. The consensus mark for revenues from the Truck segment is $5,515 million, indicating a rise from $4,962 million recorded in the previous-year quarter. The pretax profit estimate for the segment is $488 million, significantly up from $193 million reported in the year-ago period.
The demand for aftermarket parts is on the rise, spurred by high truck utilization and increased average fleet age. Encouragingly, the Zacks Consensus Estimate for fourth-quarter revenues from the Parts segment is pegged at $1,439 million, indicating a rise from $1,312 million recorded in the previous-year quarter. The estimate for pretax profit of the segment, pegged at $372 million, also suggests an increase from $306 million.
Meanwhile, the consensus mark for revenues from the Financial Services segment is $374 million, implying a slight decline from $390 million recorded in the previous-year quarter.
Other Stocks With Favorable Combination
Let’s take a look at a couple of 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:
Lear (LEA - Free Report) will release fourth-quarter 2022 results on Feb 2. The company has an Earnings ESP of +4.29% and a Zacks Rank #3.
The Zacks Consensus Estimate for Lear’s to-be-reported quarter’s earnings and revenues is pegged at $2.53 per share and $5.26 billion, respectively. LEA surpassed earnings estimates in the trailing four quarters, with the average surprise being 18%.
Harley-Davidson (HOG - Free Report) is expected to report fourth-quarter 2022 results by mid-February. The company has an Earnings ESP of +300.00% and a Zacks Rank #1.
The Zacks Consensus Estimate for Harley-Davidson’s to-be-reported quarter’s earnings and revenues is pegged at 3 cents per share and $880.5 million, respectively. HOG surpassed earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 43.3%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.