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PACCAR (PCAR) Earnings and Revenues Beat Estimates in Q2

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PACCAR Inc.’s (PCAR - Free Report) second-quarter 2018 adjusted earnings were $1.59 per share, up from $1.06 recorded in the year-ago quarter. Earnings surpassed the Zacks Consensus Estimate of $1.43. Results were aided by robust global truck deliveries and parts sales.

PACCAR posted quarterly consolidated net sales and revenues of $5.81 billion. Its adjusted revenues were $5.47 billion. The Zacks Consensus Estimate of revenues was $5.43 billion.

Segmental Results

Revenues from the Truck, Parts and Other segment increased to $5.47 billion in second-quarter 2018 from $4.40 billion in second-quarter 2017. The segment’s pre-tax income increased to $632.6 million from $467.9 million recorded a year ago.

Revenues from the Financial Services segment rose to $338 million from $306.3 million a year ago. Pre-tax income increased to $72.4 million from $62.4 million in the year-ago quarter.

PACCAR Inc. Price, Consensus and EPS Surprise

PACCAR Inc. Price, Consensus and EPS Surprise | PACCAR Inc. Quote

Financial Position

PACCAR’s cash and marketable debt securities amounted to $3.44 billion as of Jun 30, 2018, compared with $3.62 billion as of Dec 31, 2017.

Class 8 Truck Scenario & View

In the United States and Canada, Class 8 truck industry retail sales rose 32% year-to-date and are anticipated to be 265,000-285,000 vehicles in 2018.

Zacks Rank & Key Picks

PACCAR currently carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the auto space are LKQ Corporation (LKQ - Free Report) , General Motors Company (GM - Free Report) and Fox Factory Holding Corp. (FOXF - Free Report) . While LKQ sports a Zacks Rank #1 (Strong Buy), General Motors and Fox Factory carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

LKQ has an expected long-term growth rate of 15%. Over a year, shares of the company have gained 10.4%.

General Motors has an expected long-term growth rate of 8.8%. Over the past year, shares of the company have gained 10%.

Fox Factory has an expected long-term growth rate of 15.8%. Shares of the company have risen 35.4% over the past year.

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