We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Paccar (PCAR) Down 3.6% Since Last Earnings Report: Can It Rebound?
Read MoreHide Full Article
It has been about a month since the last earnings report for Paccar (PCAR - Free Report) . Shares have lost about 3.6% 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 drivers.
PACCAR's Q1 Earnings Beat Estimates
PACCAR's earnings of $2.25 per share for first-quarter 2023 beat the Zacks Consensus Estimate of $1.82 and rocketed 95.6% 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 $8,473.3 million, up from $6,472.6 million recorded in the corresponding quarter of 2022. Sales from Trucks, Parts and Others were $8,050.1 million, which surpassed the consensus mark of $7,623.9 million.
Key Takeaways
Revenues from the Trucks segment totaled $6,413.8 million in the March quarter, higher than the prior-year quarter’s $4,697.1 million. The figure also crossed the consensus mark of $5,986 million. The segment’s pre-tax income was $894.3 million, breezing past the consensus mark of $582 million and increasing a whopping 223% year over year.
Revenues from the Parts segment totaled $1,623 million in the reported quarter, increasing from the year-earlier period’s $1,388.9 million and surpassing the consensus mark of $1,539 million. The segment’s pre-tax income came in at $438.6 million, up 29% on a year-over-year basis. The metric also outpaced the consensus mark of $408 million.
Revenues of the Financial Services segment came in at $423.2 million compared with the year-ago quarter’s $366.2 million and topped the consensus estimate of $385 million. Pre-tax income inched up to $148.8 million from $147 million and came higher than the consensus mark of $138 million.
Other sales amounted to $13.3 million, missing the consensus mark of $19.2 million. The unit incurred a pretax loss of $562.7 million owing to a one-time charge of $600 million related to civil litigation in Europe. In the year-ago quarter, the company had recorded a pretax profit of $7.5 million.
Selling, general and administrative expenses in first-quarter 2023 rose to $195 million from the prior-year period’s $183.7 million. Research & development (R&D) expenses were $97.2 million compared with the year-earlier quarter’s $78 million.
PACCAR’s cash and marketable debt securities amounted to $5,922.2 million as of Mar 31, 2023, compared with $6,158.9 million on Dec 31, 2022. The company paid cash dividends of 25 cents per share during the reported quarter.
Capex and R&D expenses for 2023 are envisioned in the band of $600-$650 million and $380-$420 million, respectively.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
The consensus estimate has shifted 23.65% due to these changes.
VGM Scores
At this time, Paccar has a strong Growth Score of A, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top quintile 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.
Performance of an Industry Player
Paccar belongs to the Zacks Automotive - Domestic industry. Another stock from the same industry, Tesla (TSLA - Free Report) , has gained 19% over the past month. More than a month has passed since the company reported results for the quarter ended March 2023.
Tesla reported revenues of $23.33 billion in the last reported quarter, representing a year-over-year change of +24.4%. EPS of $0.85 for the same period compares with $1.07 a year ago.
Tesla is expected to post earnings of $0.83 per share for the current quarter, representing a year-over-year change of +9.2%. Over the last 30 days, the Zacks Consensus Estimate has changed -2.6%.
Tesla has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Paccar (PCAR) Down 3.6% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Paccar (PCAR - Free Report) . Shares have lost about 3.6% 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 drivers.
PACCAR's Q1 Earnings Beat Estimates
PACCAR's earnings of $2.25 per share for first-quarter 2023 beat the Zacks Consensus Estimate of $1.82 and rocketed 95.6% 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 $8,473.3 million, up from $6,472.6 million recorded in the corresponding quarter of 2022. Sales from Trucks, Parts and Others were $8,050.1 million, which surpassed the consensus mark of $7,623.9 million.
Key Takeaways
Revenues from the Trucks segment totaled $6,413.8 million in the March quarter, higher than the prior-year quarter’s $4,697.1 million. The figure also crossed the consensus mark of $5,986 million. The segment’s pre-tax income was $894.3 million, breezing past the consensus mark of $582 million and increasing a whopping 223% year over year.
Revenues from the Parts segment totaled $1,623 million in the reported quarter, increasing from the year-earlier period’s $1,388.9 million and surpassing the consensus mark of $1,539 million. The segment’s pre-tax income came in at $438.6 million, up 29% on a year-over-year basis. The metric also outpaced the consensus mark of $408 million.
Revenues of the Financial Services segment came in at $423.2 million compared with the year-ago quarter’s $366.2 million and topped the consensus estimate of $385 million. Pre-tax income inched up to $148.8 million from $147 million and came higher than the consensus mark of $138 million.
Other sales amounted to $13.3 million, missing the consensus mark of $19.2 million. The unit incurred a pretax loss of $562.7 million owing to a one-time charge of $600 million related to civil litigation in Europe. In the year-ago quarter, the company had recorded a pretax profit of $7.5 million.
Selling, general and administrative expenses in first-quarter 2023 rose to $195 million from the prior-year period’s $183.7 million. Research & development (R&D) expenses were $97.2 million compared with the year-earlier quarter’s $78 million.
PACCAR’s cash and marketable debt securities amounted to $5,922.2 million as of Mar 31, 2023, compared with $6,158.9 million on Dec 31, 2022. The company paid cash dividends of 25 cents per share during the reported quarter.
Capex and R&D expenses for 2023 are envisioned in the band of $600-$650 million and $380-$420 million, respectively.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
The consensus estimate has shifted 23.65% due to these changes.
VGM Scores
At this time, Paccar has a strong Growth Score of A, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top quintile 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.
Performance of an Industry Player
Paccar belongs to the Zacks Automotive - Domestic industry. Another stock from the same industry, Tesla (TSLA - Free Report) , has gained 19% over the past month. More than a month has passed since the company reported results for the quarter ended March 2023.
Tesla reported revenues of $23.33 billion in the last reported quarter, representing a year-over-year change of +24.4%. EPS of $0.85 for the same period compares with $1.07 a year ago.
Tesla is expected to post earnings of $0.83 per share for the current quarter, representing a year-over-year change of +9.2%. Over the last 30 days, the Zacks Consensus Estimate has changed -2.6%.
Tesla has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.