PACCAR Inc. (PCAR - Free Report) has reported earnings of 43 cents per share for second-quarter 2020, beating the Zacks Consensus Estimate of 31 cents, mainly on higher pre-tax income from the company’s trucks, parts and others, and financial service units. However, the reported figure comes in lower than the prior-year quarter’s $1.78.
Consolidated revenues (including trucks and financial services) came in at $3.06 billion, surpassing the Zacks Consensus Estimate of $2.93 billion. The top-line figure, however, comes in lower than the year-ago quarter’s $6.63 billion.
During the reported quarter, the company recorded total pre-tax income of $184 million, marking a decline from the prior-year quarter’s $814.4 million. The company’s net income fell to $147.7 million from the $619.7 million reported in second-quarter 2019.
SG&A expenses during second-quarter 2020 plunged 30.6% to $120.2 million from the $173.3 million incurred in second-quarter 2019. R&D expenses declined 19.4% to $66.5 million during the June-end quarter from the year-earlier quarter’s $82.5 million.
PACCAR Inc. Price, Consensus and EPS Surprise
Segmental Performance
Revenues from trucks, parts and others totaled $2.7 billion in the second quarter, down from the prior-year quarter’s $6.27 billion. The segment’s pre-tax income significantly decreased to $119.5 million from the $712.3 million recorded in the year-ago period. However, the figure surpassed the Zacks Consensus Estimate of $53 million.
Revenues in the financial services segment decreased to $360.3 million from the year-earlier quarter’s $361.4 million. Pre-tax income declined to $55.5 million from the $80.3 million reported in the year-ago quarter. However, the figure outpaced the Zacks Consensus Estimate of $38.66 million.
Dividends & Cash Position
During second-quarter 2020, PACCAR announced a regular quarterly cash dividend of 32 cents per share, payable on Sep 1, to stockholders of record as of Aug 11, 2020.
PACCAR’s cash and marketable debt securities amounted to $4.2 billion as of Jun 30, 2020, compared with $5.2 billion as of Dec 31, 2019.
Outlook
The company has reiterated its capex and R&D expenses projection for the ongoing year. Capex is now projected at $525-$575 million, and R&D expenses are estimated in the $265-$295 million band.
Zacks Rank & Stocks to Consider
PACCAR currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks are Sonic Automotive, Inc. (SAH - Free Report) , Niu Technologies (NIU - Free Report) and LCI Industries (LCII - Free Report) . While Sonic flaunts a Zack Rank of 1 (Strong Buy), Niu and LCI Industries carry a Zack Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Sonic have rallied 23.8%, year to date, compared with the industry’s rise of 18.4%.
Shares of Niu have surged 129%, year to date, as against the industry’s decline of 8.8%.
Shares of LCI Industries have appreciated 11.6%, year to date, as against the industry’s decline of 8.8%.
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PACCAR Inc. (PCAR - Free Report) has reported earnings of 43 cents per share for second-quarter 2020, beating the Zacks Consensus Estimate of 31 cents, mainly on higher pre-tax income from the company’s trucks, parts and others, and financial service units. However, the reported figure comes in lower than the prior-year quarter’s $1.78.
Consolidated revenues (including trucks and financial services) came in at $3.06 billion, surpassing the Zacks Consensus Estimate of $2.93 billion. The top-line figure, however, comes in lower than the year-ago quarter’s $6.63 billion.
During the reported quarter, the company recorded total pre-tax income of $184 million, marking a decline from the prior-year quarter’s $814.4 million. The company’s net income fell to $147.7 million from the $619.7 million reported in second-quarter 2019.
SG&A expenses during second-quarter 2020 plunged 30.6% to $120.2 million from the $173.3 million incurred in second-quarter 2019. R&D expenses declined 19.4% to $66.5 million during the June-end quarter from the year-earlier quarter’s $82.5 million.
PACCAR Inc. Price, Consensus and EPS Surprise
Segmental Performance
Revenues from trucks, parts and others totaled $2.7 billion in the second quarter, down from the prior-year quarter’s $6.27 billion. The segment’s pre-tax income significantly decreased to $119.5 million from the $712.3 million recorded in the year-ago period. However, the figure surpassed the Zacks Consensus Estimate of $53 million.
Revenues in the financial services segment decreased to $360.3 million from the year-earlier quarter’s $361.4 million. Pre-tax income declined to $55.5 million from the $80.3 million reported in the year-ago quarter. However, the figure outpaced the Zacks Consensus Estimate of $38.66 million.
Dividends & Cash Position
During second-quarter 2020, PACCAR announced a regular quarterly cash dividend of 32 cents per share, payable on Sep 1, to stockholders of record as of Aug 11, 2020.
PACCAR’s cash and marketable debt securities amounted to $4.2 billion as of Jun 30, 2020, compared with $5.2 billion as of Dec 31, 2019.
Outlook
The company has reiterated its capex and R&D expenses projection for the ongoing year. Capex is now projected at $525-$575 million, and R&D expenses are estimated in the $265-$295 million band.
Zacks Rank & Stocks to Consider
PACCAR currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks are Sonic Automotive, Inc. (SAH - Free Report) , Niu Technologies (NIU - Free Report) and LCI Industries (LCII - Free Report) . While Sonic flaunts a Zack Rank of 1 (Strong Buy), Niu and LCI Industries carry a Zack Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Sonic have rallied 23.8%, year to date, compared with the industry’s rise of 18.4%.
Shares of Niu have surged 129%, year to date, as against the industry’s decline of 8.8%.
Shares of LCI Industries have appreciated 11.6%, year to date, as against the industry’s decline of 8.8%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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