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PACCAR (PCAR) Q2 Earnings & Sales Beat Estimates, Down Y/Y
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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.
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.
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.
Image: Bigstock
PACCAR (PCAR) Q2 Earnings & Sales Beat Estimates, Down Y/Y
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
PACCAR Inc. price-consensus-eps-surprise-chart | PACCAR Inc. Quote
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 >>