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PACCAR (PCAR) Q3 Earnings Top Estimates, Jump 109% Y/Y
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PACCAR Inc.’s (PCAR - Free Report) earnings of $2.21 per share for third-quarter 2022 beat the Zacks Consensus Estimate of $2.01 and rocketed 109% from the year-ago figure. Higher-than-expected pretax income from Trucks, Parts and Financial Services segments resulted in the outperformance.
Consolidated revenues (including trucks and financial services) came in at $7,059 billion, up from $5,146.8 million recorded in the corresponding quarter of 2021. Sales from Trucks, Parts and Others were $6,687 million, which marginally missed the consensus mark of $6,692 million.
Key Takeaways
Revenues from the Trucks segment totaled $5,198.2 million in the September quarter, higher than the prior-year quarter’s $3,452.6 million. The figure, however, missed the consensus mark of $5,313 million. The segment’s pre-tax income was $430.5 million, surpassing the consensus mark of $385 million and increasing a whopping 438% year over year.
Revenues from the Parts segment totaled $1,472 million in the reported quarter, increasing from the year-earlier period’s $1,260 million and surpassing the consensus mark of $1,431 million. The segment’s pre-tax income came in at $374 million, up 32.6% on a yearly basis. The metric also outpaced the consensus mark of $353 million.
Revenues of the Financial Services segment declined to $372 million from the year-earlier quarter’s $409 million but came in line with the consensus estimate. Pre-tax income rose to $146 million from $120 million and came higher than the consensus mark of $142 million.
Other sales amounted to $17.3 million. Pretax income from the unit rose to $29.4 million from $4.6 million in the year-ago period.
Selling, general and administrative expenses in third-quarter 2022 inched up to $171 million from the prior-year period’s $168.6 million. Research & development (R&D) expenses were $82.9 million compared with the year-earlier quarter’s $72.5 million.
PACCAR’s cash and marketable debt securities amounted to $4,762.9 million as of Sep 30, 2022, compared with $4,813 million on Dec 31, 2021.
Capex and R&D expenses for 2022 are envisioned in the band of $475-$500 million and $330-$340 million, respectively. For 2023, capital expenditure and R&D costs are projected to be between $525 million and $575 million and $350 million and $400 million, respectively.
The company declared a cash dividend of 37 cents per share, marking an increase from the last payout. The dividend will be paid out on Dec 6 to shareholders of record as of Nov 15.
A few better-ranked players in the auto space include Harley Davidson (HOG - Free Report) and Tesla (TSLA - Free Report) . While HOG sports a Zacks Rank #1, Tesla carries a Zacks Rank #2 (Buy).
Harley Davidson is one of the leading motorcycle makers in the world. The Zacks Consensus Estimate for HOG’s 2022 earnings and sales implies year-over-year growth of 8.4% and 6.6%, respectively. Over the trailing four quarters, HOG surpassed earnings estimates thrice and missed on the other occasion, the average being 49.5%.
Tesla is the market leader in battery-powered electric car sales in the United States, with roughly 70% market share. The Zacks Consensus Estimate for TSLA’s 2022 earnings and sales implies year-over-year growth of 78.3% and 56.4%, respectively. Over the trailing four quarters, Tesla surpassed earnings estimates on all occasions, the average being 26.4%.
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PACCAR (PCAR) Q3 Earnings Top Estimates, Jump 109% Y/Y
PACCAR Inc.’s (PCAR - Free Report) earnings of $2.21 per share for third-quarter 2022 beat the Zacks Consensus Estimate of $2.01 and rocketed 109% from the year-ago figure. Higher-than-expected pretax income from Trucks, Parts and Financial Services segments resulted in the outperformance.
Consolidated revenues (including trucks and financial services) came in at $7,059 billion, up from $5,146.8 million recorded in the corresponding quarter of 2021. Sales from Trucks, Parts and Others were $6,687 million, which marginally missed the consensus mark of $6,692 million.
Key Takeaways
Revenues from the Trucks segment totaled $5,198.2 million in the September quarter, higher than the prior-year quarter’s $3,452.6 million. The figure, however, missed the consensus mark of $5,313 million. The segment’s pre-tax income was $430.5 million, surpassing the consensus mark of $385 million and increasing a whopping 438% year over year.
Revenues from the Parts segment totaled $1,472 million in the reported quarter, increasing from the year-earlier period’s $1,260 million and surpassing the consensus mark of $1,431 million. The segment’s pre-tax income came in at $374 million, up 32.6% on a yearly basis. The metric also outpaced the consensus mark of $353 million.
Revenues of the Financial Services segment declined to $372 million from the year-earlier quarter’s $409 million but came in line with the consensus estimate. Pre-tax income rose to $146 million from $120 million and came higher than the consensus mark of $142 million.
Other sales amounted to $17.3 million. Pretax income from the unit rose to $29.4 million from $4.6 million in the year-ago period.
Selling, general and administrative expenses in third-quarter 2022 inched up to $171 million from the prior-year period’s $168.6 million. Research & development (R&D) expenses were $82.9 million compared with the year-earlier quarter’s $72.5 million.
PACCAR’s cash and marketable debt securities amounted to $4,762.9 million as of Sep 30, 2022, compared with $4,813 million on Dec 31, 2021.
Capex and R&D expenses for 2022 are envisioned in the band of $475-$500 million and $330-$340 million, respectively. For 2023, capital expenditure and R&D costs are projected to be between $525 million and $575 million and $350 million and $400 million, respectively.
The company declared a cash dividend of 37 cents per share, marking an increase from the last payout. The dividend will be paid out on Dec 6 to shareholders of record as of Nov 15.
Zacks Rank & Key Picks
PACCAR currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A few better-ranked players in the auto space include Harley Davidson (HOG - Free Report) and Tesla (TSLA - Free Report) . While HOG sports a Zacks Rank #1, Tesla carries a Zacks Rank #2 (Buy).
Harley Davidson is one of the leading motorcycle makers in the world. The Zacks Consensus Estimate for HOG’s 2022 earnings and sales implies year-over-year growth of 8.4% and 6.6%, respectively. Over the trailing four quarters, HOG surpassed earnings estimates thrice and missed on the other occasion, the average being 49.5%.
Tesla is the market leader in battery-powered electric car sales in the United States, with roughly 70% market share. The Zacks Consensus Estimate for TSLA’s 2022 earnings and sales implies year-over-year growth of 78.3% and 56.4%, respectively. Over the trailing four quarters, Tesla surpassed earnings estimates on all occasions, the average being 26.4%.