PACCAR Inc. (PCAR - Free Report) reported earnings of $2.07 per share for second-quarter 2022. The reported earnings topped the Zacks Consensus Estimate of $1.81 and rose from the year-ago figure of $1.42. Higher-than-expected pretax income from Trucks and Parts segments resulted in the outperformance.
Consolidated revenues (including trucks and financial services) came in at $7,158.7 million, up from $5,844 million recorded in the corresponding quarter of 2021. Sales from Trucks, Parts and Others were $6,786.2 million, beating the consensus mark of $6,517.9 million.
Key Takeaways
Revenues from the Trucks segment totaled $5,336.4 million in the June quarter, higher than the prior-year quarter’s $4,152.2 million. The figure also topped the consensus mark of $5,129 million. The segment’s pre-tax income was $422.1 million, surpassing the consensus mark of $336 million and increasing 64.5% year over year.
Revenues from the Parts segment totaled $1,434.7 million in the reported quarter, increasing from the year-earlier period’s $1,211.3 million and surpassing the consensus mark of $1,393 million. The segment’s pre-tax income came in at $353.3 million, up 32.4% on a yearly basis. The metric also outpaced the consensus mark of $339 million.
Revenues in the Financial Services segment declined to $372.5 million from the year-earlier quarter’s $456.3 million and missed the consensus estimate of $418 million. Nonetheless, pre-tax income rose to $144.4 million from $106.5 million.
Other sales amounted to $15.1 million, falling short of the consensus estimate of $27 million. Pretax income from the unit declined from $10.5 million to $2.3 million in the quarter under review.
Selling, general and administrative expenses in second-quarter 2022 rose to $177 million from the prior-year period’s $164.4 million. Research & development (R&D) expenses were $80.4 million compared with the year-earlier quarter’s $84.4 million.
PACCAR’s cash and marketable debt securities amounted to $4,694.3 million as of Jun 30, 2022, compared with $4,813 million on Dec 31, 2021.
Capex and R&D expenses for 2022 are envisioned in the band of $425-$475 million and $330-$350 million, respectively.
The company declared a cash dividend of 34 cents per share, to be paid out on Sep 7 to shareholders of record as of Aug 17.
Zacks Rank & Key Picks
PACCAR currently carries a Zacks Rank #3 (Hold).
A few better-ranked players in the auto space include Garrett Motion (GTX - Free Report) and Commercial Vehicle Group (CVGI - Free Report) . Both these stocks sport a Zacks Rank #1 (Strong Buy).
Switzerland-based Garrett designs, manufactures, and sells turbocharger and electric-boosting technologies. The Zacks Consensus Estimate for GTX’s 2022 earnings and sales implies year-over-year growth of 6.7% and 1.8%, respectively. The consensus mark for 2022 earnings has been revised upward by 5 cents in the past 60 days. Over the trailing four quarters, Garrett surpassed earnings estimates twice for as many misses, the average being 75.4%.
Ohio-based Commercial Vehicle Group supplies interior systems, vision safety solutions and other cab-related products for the global commercial vehicle market, including the heavy-duty (Class 8) truck market, the construction market and other specialized transportation markets. The Zacks Consensus Estimate for CVGI’s 2022 earnings and sales implies year-over-year growth of 6.2% and 2.6%, respectively. The consensus mark for 2022 earnings has been revised upward by 10 cents in the past 30 days.
You can see the complete list of today’s Zacks #1 Rank stocks here.
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PACCAR Inc. (PCAR - Free Report) reported earnings of $2.07 per share for second-quarter 2022. The reported earnings topped the Zacks Consensus Estimate of $1.81 and rose from the year-ago figure of $1.42. Higher-than-expected pretax income from Trucks and Parts segments resulted in the outperformance.
Consolidated revenues (including trucks and financial services) came in at $7,158.7 million, up from $5,844 million recorded in the corresponding quarter of 2021. Sales from Trucks, Parts and Others were $6,786.2 million, beating the consensus mark of $6,517.9 million.
Key Takeaways
Revenues from the Trucks segment totaled $5,336.4 million in the June quarter, higher than the prior-year quarter’s $4,152.2 million. The figure also topped the consensus mark of $5,129 million. The segment’s pre-tax income was $422.1 million, surpassing the consensus mark of $336 million and increasing 64.5% year over year.
Revenues from the Parts segment totaled $1,434.7 million in the reported quarter, increasing from the year-earlier period’s $1,211.3 million and surpassing the consensus mark of $1,393 million. The segment’s pre-tax income came in at $353.3 million, up 32.4% on a yearly basis. The metric also outpaced the consensus mark of $339 million.
Revenues in the Financial Services segment declined to $372.5 million from the year-earlier quarter’s $456.3 million and missed the consensus estimate of $418 million. Nonetheless, pre-tax income rose to $144.4 million from $106.5 million.
Other sales amounted to $15.1 million, falling short of the consensus estimate of $27 million. Pretax income from the unit declined from $10.5 million to $2.3 million in the quarter under review.
Selling, general and administrative expenses in second-quarter 2022 rose to $177 million from the prior-year period’s $164.4 million. Research & development (R&D) expenses were $80.4 million compared with the year-earlier quarter’s $84.4 million.
PACCAR’s cash and marketable debt securities amounted to $4,694.3 million as of Jun 30, 2022, compared with $4,813 million on Dec 31, 2021.
Capex and R&D expenses for 2022 are envisioned in the band of $425-$475 million and $330-$350 million, respectively.
The company declared a cash dividend of 34 cents per share, to be paid out on Sep 7 to shareholders of record as of Aug 17.
Zacks Rank & Key Picks
PACCAR currently carries a Zacks Rank #3 (Hold).
A few better-ranked players in the auto space include Garrett Motion (GTX - Free Report) and Commercial Vehicle Group (CVGI - Free Report) . Both these stocks sport a Zacks Rank #1 (Strong Buy).
Switzerland-based Garrett designs, manufactures, and sells turbocharger and electric-boosting technologies. The Zacks Consensus Estimate for GTX’s 2022 earnings and sales implies year-over-year growth of 6.7% and 1.8%, respectively. The consensus mark for 2022 earnings has been revised upward by 5 cents in the past 60 days. Over the trailing four quarters, Garrett surpassed earnings estimates twice for as many misses, the average being 75.4%.
Ohio-based Commercial Vehicle Group supplies interior systems, vision safety solutions and other cab-related products for the global commercial vehicle market, including the heavy-duty (Class 8) truck market, the construction market and other specialized transportation markets. The Zacks Consensus Estimate for CVGI’s 2022 earnings and sales implies year-over-year growth of 6.2% and 2.6%, respectively. The consensus mark for 2022 earnings has been revised upward by 10 cents in the past 30 days.
You can see the complete list of today’s Zacks #1 Rank stocks here.
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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