It has been about a month since the last earnings report for Paccar (PCAR - Free Report) . Shares have lost about 9.8% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Paccar due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
PACCAR’s Earnings Miss Estimates in Q2, Improve Y/Y
PACCAR’s second-quarter 2019 earnings were $1.78 per share, missing the Zacks Consensus Estimate of $1.81. In second-quarter 2018, the company’s earnings per share were $1.59. This year-over-year improvement can be attributed to a record truck delivery and part sales.
The company posted quarterly consolidated net sales and revenues of $6.63 billion, up from the prior-year quarter figure of $5.81 billion.
Segmental Results
The pre-tax revenues from the Truck, Parts and Other segment increased to $713.3 million from $632.6 million recorded a year ago.
Revenues from the Financial Services segment rose to $80.3 million from $72.4 million a year ago. Pre-tax income increased to $814.4 million from $719.6 million in the year-ago quarter.
Financial Position
PACCAR’s cash and marketable debt securities amounted to $4.18 billion as of Jun 30, 2019, compared with $4.30 billion as of Dec 31, 2018.
Details on Class 8 Truck and View
In the United States and Canada, on a year-to-date basis, Class 8 truck industry retail units sold rose 20% year over year. For 2019, the Class 8 truck industry retail unit sale in the United States and Canada is anticipated to rise to 300,000-320,000 from the previously mentioned 295,000-315,000.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
VGM Scores
At this time, Paccar has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Paccar has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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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 >>
It has been about a month since the last earnings report for Paccar (PCAR - Free Report) . Shares have lost about 9.8% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Paccar due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
PACCAR’s Earnings Miss Estimates in Q2, Improve Y/Y
PACCAR’s second-quarter 2019 earnings were $1.78 per share, missing the Zacks Consensus Estimate of $1.81. In second-quarter 2018, the company’s earnings per share were $1.59. This year-over-year improvement can be attributed to a record truck delivery and part sales.
The company posted quarterly consolidated net sales and revenues of $6.63 billion, up from the prior-year quarter figure of $5.81 billion.
Segmental Results
The pre-tax revenues from the Truck, Parts and Other segment increased to $713.3 million from $632.6 million recorded a year ago.
Revenues from the Financial Services segment rose to $80.3 million from $72.4 million a year ago. Pre-tax income increased to $814.4 million from $719.6 million in the year-ago quarter.
Financial Position
PACCAR’s cash and marketable debt securities amounted to $4.18 billion as of Jun 30, 2019, compared with $4.30 billion as of Dec 31, 2018.
Details on Class 8 Truck and View
In the United States and Canada, on a year-to-date basis, Class 8 truck industry retail units sold rose 20% year over year. For 2019, the Class 8 truck industry retail unit sale in the United States and Canada is anticipated to rise to 300,000-320,000 from the previously mentioned 295,000-315,000.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
VGM Scores
At this time, Paccar has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Paccar has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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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