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PACCAR (PCAR) Q3 Earnings Miss on Weak Profits From Trucks Unit

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PACCAR Inc. (PCAR - Free Report) reported earnings of $1.08 per share for third-quarter 2021, missing the Zacks Consensus Estimate of $1.21. Lower-than-anticipated sales and profit from the Trucks segment resulted in this underperformance.

Consolidated revenues (including trucks and financial services) came in at $5,146.8 million, up from $4,936 million recorded in the corresponding quarter of 2020. Sales from Trucks, Parts and Others came in at $4,737.7 million, topping the consensus mark of $4,487 million.

PACCAR Inc. Price, Consensus and EPS Surprise

PACCAR Inc. Price, Consensus and EPS Surprise

PACCAR Inc. price-consensus-eps-surprise-chart | PACCAR Inc. Quote

Key Takeaways

Revenues from the Trucks segment totaled $3,452.6 million for the September-end quarter, lower than the prior-year quarter’s $3,504 million. The figure also lagged the consensus mark of $3,761 million. The segment’s pre-tax income came in at $78.5 million, tanking 62.8% year over year. The reported figure also missed the consensus mark of $188 million.

Revenues from the Parts segment totaled $1,260 million for the reported quarter, increasing from the year-earlier period’s $1,016.2 million and topping the consensus mark of $1,189 million. The segment’s pre-tax income came in at $280.8 million, up from $210.2 million recorded in the year-ago period. The reported figure also topped the consensus mark of $258 million.

Revenues in the Financial Services segment increased to $409.1 million from the year-earlier quarter’s $397.6 million but fell short of the consensus estimate of $464 million. Pre-tax income rose to $120.1 million from $55.5 million recorded in the year-earlier period, beating the consensus mark of $107 million.

Selling, general and administrative expenses for third-quarter 2021 rose to $134.7 million from the prior-year period’s $100.4 million. Research & Development (R&D) expenses were $72.5 million for third-quarter 2021 compared with the year-earlier period’s $64.7 million.

PACCAR’s cash and marketable debt securities amounted to $3,647.8 million as of Sep 30, 2021 compared with $4,834 million on Dec 31, 2020.

For 2021, capex is projected at $525-$550 million, while R&D expenses are estimated in the $320-$340 million band. This Zacks Rank #4 (Sell) player envisions spending $425-$475 million in capex in 2022 and $350-$400 million in R&D activities. Some better-ranked players in the auto space include Tesla (TSLA - Free Report) , AutoNation (AN - Free Report) and Stellantis (STLA - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.


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