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PACCAR (PCAR) to Report Q1 Earnings: What's in the Cards?
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PACCAR (PCAR - Free Report) is slated to release first-quarter 2023 results on Apr 25, before market open. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share and revenues is pegged at $1.80 and $7.54 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 56.52% from the year-ago reported number. The Zacks Consensus Estimate for its quarterly revenues suggests a year-over-year increase of 23.49%. Over the trailing four quarters, PACCAR surpassed earnings estimates on all occasions, the average surprise being 14.15%. This is depicted in the graph below:
PACCAR topped the Zacks Consensus Estimate for earnings and revenues in fourth-quarter 2022. Its adjusted earnings per share of $1.76 surpassed the consensus metric of $1.49 and rocketed 77.78% 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 $8,129.5 billion, up from $6,686.1 million recorded in the corresponding quarter of 2021. Sales from Trucks, Parts and Others were $7,734.7 million, which surpassed the consensus mark of $7,036.8 million.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for PACCAR in the quarter to be reported, as it does not have 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 -3.83%. This is because the Most Accurate Estimate is pegged 7 cents lower than the Zacks Consensus Estimate.
Zacks Rank: It currently carries a Zacks Rank #2.
Factors at Play
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 51,618 units, up from the 43,000 units reported in the prior-year quarter. The consensus mark for revenues from the Truck segment is $5,986 million, indicating a rise from $4,697 million recorded in the previous-year quarter. The pretax profit estimate for the segment is $582 million, significantly higher than $276.7 million reported in the year-ago period.
Meanwhile, PACCAR has invested more than $7 billion in new and expanded facilities, innovative products and new technologies in the past decade. High capex requirements to develop technologically advanced offerings are likely to continue. While the company’s heavy investment in innovative products and technology is likely to buoy its prospects, it may strain its near-term financials and cash flows.
Stocks With the Favorable Combination
Let’s take a look at a few players from the auto space that, according to our model, have the right combination of elements to post an earnings beat in the quarter to be reported:
The Zacks Consensus Estimate for Polaris’ to-be-reported quarter’s earnings and revenues is pegged at $1.73 per share and $1.91 billion, respectively. PII surpassed earnings estimates in three of the trailing four quarters and missed in one in the fiscal year 2022, the average surprise being 2.16%.
Lear (LEA - Free Report) will release first-quarter 2023 results on Apr 27. The company has an Earnings ESP of +5.61% and a Zacks Rank #3.
The Zacks Consensus Estimate for Lear’s to-be-reported quarter’s earnings and revenues is pegged at $2.47 per share and $5.28 billion, respectively. LEA surpassed earnings estimates in all the trailing four quarters in the fiscal year 2022, the average surprise being 17.12%.
Mobileye Global Inc. (MBLY - Free Report) will release first-quarter 2023 results on Apr 27. The company has an Earnings ESP of +11.94% and a Zacks Rank #3.
The Zacks Consensus Estimate for Mobileye’s to-be-reported quarter’s earnings and revenues is pegged at 13 cents per share and $463.3 million, respectively.
Image: Bigstock
PACCAR (PCAR) to Report Q1 Earnings: What's in the Cards?
PACCAR (PCAR - Free Report) is slated to release first-quarter 2023 results on Apr 25, before market open. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share and revenues is pegged at $1.80 and $7.54 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 56.52% from the year-ago reported number. The Zacks Consensus Estimate for its quarterly revenues suggests a year-over-year increase of 23.49%. Over the trailing four quarters, PACCAR surpassed earnings estimates on all occasions, the average surprise being 14.15%. This is depicted in the graph below:
PACCAR Inc. Price and EPS Surprise
PACCAR Inc. price-eps-surprise | PACCAR Inc. Quote
Q4 Highlights
PACCAR topped the Zacks Consensus Estimate for earnings and revenues in fourth-quarter 2022. Its adjusted earnings per share of $1.76 surpassed the consensus metric of $1.49 and rocketed 77.78% 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 $8,129.5 billion, up from $6,686.1 million recorded in the corresponding quarter of 2021. Sales from Trucks, Parts and Others were $7,734.7 million, which surpassed the consensus mark of $7,036.8 million.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for PACCAR in the quarter to be reported, as it does not have 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 -3.83%. This is because the Most Accurate Estimate is pegged 7 cents lower than the Zacks Consensus Estimate.
Zacks Rank: It currently carries a Zacks Rank #2.
Factors at Play
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 51,618 units, up from the 43,000 units reported in the prior-year quarter. The consensus mark for revenues from the Truck segment is $5,986 million, indicating a rise from $4,697 million recorded in the previous-year quarter. The pretax profit estimate for the segment is $582 million, significantly higher than $276.7 million reported in the year-ago period.
Meanwhile, PACCAR has invested more than $7 billion in new and expanded facilities, innovative products and new technologies in the past decade. High capex requirements to develop technologically advanced offerings are likely to continue. While the company’s heavy investment in innovative products and technology is likely to buoy its prospects, it may strain its near-term financials and cash flows.
Stocks With the Favorable Combination
Let’s take a look at a few players from the auto space that, according to our model, have the right combination of elements to post an earnings beat in the quarter to be reported:
Polaris (PII - Free Report) will release first-quarter 2023 results on Apr 25. The company has an Earnings ESP of +3.85% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Polaris’ to-be-reported quarter’s earnings and revenues is pegged at $1.73 per share and $1.91 billion, respectively. PII surpassed earnings estimates in three of the trailing four quarters and missed in one in the fiscal year 2022, the average surprise being 2.16%.
Lear (LEA - Free Report) will release first-quarter 2023 results on Apr 27. The company has an Earnings ESP of +5.61% and a Zacks Rank #3.
The Zacks Consensus Estimate for Lear’s to-be-reported quarter’s earnings and revenues is pegged at $2.47 per share and $5.28 billion, respectively. LEA surpassed earnings estimates in all the trailing four quarters in the fiscal year 2022, the average surprise being 17.12%.
Mobileye Global Inc. (MBLY - Free Report) will release first-quarter 2023 results on Apr 27. The company has an Earnings ESP of +11.94% and a Zacks Rank #3.
The Zacks Consensus Estimate for Mobileye’s to-be-reported quarter’s earnings and revenues is pegged at 13 cents per share and $463.3 million, respectively.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.