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PACCAR (PCAR) Q2 Earnings & Sales Beat Estimates, Grow Y/Y

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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.

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 $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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