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PACCAR (PCAR) Q2 Earnings Beat Estimates on Record Revenues
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PACCAR Inc.’s (PCAR - Free Report) earnings of $2.33 per share for second-quarter 2023 beat the Zacks Consensus Estimate of $2.14 and rocketed 70% from the year-ago figure.
Consolidated revenues (including trucks and financial services) came in at $8,881 million, up from $7,158.7 million recorded in the corresponding quarter of 2022. Sales from Trucks, Parts and Others were $8,441.3 million, which surpassed the Zacks Consensus Estimate of $8,280 million.
Revenues from the Trucks segment totaled $6,827.5 million in the June quarter, higher than the prior-year quarter’s $5,336.4 million. The figure also crossed our estimate of $5,756.4 million due to higher-than-expected demand for trucks with high fuel efficiency. The segment’s pre-tax income was $948.3 million, outpacing our estimate of $868.6 million and increasing a whopping 125% year over year.
Revenues from the Parts segment totaled $1,598.9 million in the reported quarter, increasing from the year-earlier period’s $1,434.7 million and surpassing our estimate of $1,587.7 million. The segment’s pre-tax income came in at $419.3 million, up 18.7% on a year-over-year basis. The metric, however, lagged our estimate of $562.6 million.
Revenues of the Financial Services segment came in at $439.8 million compared with the year-ago quarter’s $372.5 million and topped our estimate of $273.3 million due to its high-quality portfolio. Pre-tax income increased to $144.7 million from $144.4 million and came higher than our forecast of $103 million, thanks to its high-quality portfolio and good used truck profitability.
Other sales amounted to $14.9 million, surpassing our estimate of $14.5 million. Pretax profit increased to $56.2 million, up from $2.3 million.
Selling, general and administrative expenses in second-quarter 2023 increased to $181.9 million, up from $176.8 million in the prior-year period. Research & development (R&D) expenses were $101.3 million compared with the year-earlier quarter’s $80.4 million.
PACCAR’s cash and marketable debt securities amounted to $6,618.4 million as of Jun 30, 2023 compared with $6,158.9 million on Dec 31, 2022. The company hiked its dividend by 8% to 27 cents per share, up from 25 cents per share in the prior quarter.
Capex and R&D expenses for 2023 are envisioned in the band of $625-$675 million and $400-$430 million, respectively.
The Zacks Consensus Estimate for LEA’s 2023 sales and earnings implies year-over-year growth of 14.1% and 75.4%, respectively. The EPS estimate for 2023 has moved north by 20 cents in the past seven days. The 2024 EPS estimate has moved up by 8 cents in the past seven days.
The Zacks Consensus Estimate for OSK’s 2023 sales and earnings implies year-over-year growth of 8.6% and 295.1%, respectively. The EPS estimate for 2023 has moved up by a cent in the past seven days. The 2024 EPS estimate has remained unchanged in the past seven days.
The Zacks Consensus Estimate for F’s 2023 sales implies year-over-year growth of 4.9%. The 2023 EPS estimate has been revised upward by 4 cents in the past 30 days. The EPS estimate for 2024 has moved north by 3 cents in the past 30 days.
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PACCAR (PCAR) Q2 Earnings Beat Estimates on Record Revenues
PACCAR Inc.’s (PCAR - Free Report) earnings of $2.33 per share for second-quarter 2023 beat the Zacks Consensus Estimate of $2.14 and rocketed 70% from the year-ago figure.
Consolidated revenues (including trucks and financial services) came in at $8,881 million, up from $7,158.7 million recorded in the corresponding quarter of 2022. Sales from Trucks, Parts and Others were $8,441.3 million, which surpassed the Zacks Consensus Estimate of $8,280 million.
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 $6,827.5 million in the June quarter, higher than the prior-year quarter’s $5,336.4 million. The figure also crossed our estimate of $5,756.4 million due to higher-than-expected demand for trucks with high fuel efficiency. The segment’s pre-tax income was $948.3 million, outpacing our estimate of $868.6 million and increasing a whopping 125% year over year.
Revenues from the Parts segment totaled $1,598.9 million in the reported quarter, increasing from the year-earlier period’s $1,434.7 million and surpassing our estimate of $1,587.7 million. The segment’s pre-tax income came in at $419.3 million, up 18.7% on a year-over-year basis. The metric, however, lagged our estimate of $562.6 million.
Revenues of the Financial Services segment came in at $439.8 million compared with the year-ago quarter’s $372.5 million and topped our estimate of $273.3 million due to its high-quality portfolio. Pre-tax income increased to $144.7 million from $144.4 million and came higher than our forecast of $103 million, thanks to its high-quality portfolio and good used truck profitability.
Other sales amounted to $14.9 million, surpassing our estimate of $14.5 million. Pretax profit increased to $56.2 million, up from $2.3 million.
Selling, general and administrative expenses in second-quarter 2023 increased to $181.9 million, up from $176.8 million in the prior-year period. Research & development (R&D) expenses were $101.3 million compared with the year-earlier quarter’s $80.4 million.
PACCAR’s cash and marketable debt securities amounted to $6,618.4 million as of Jun 30, 2023 compared with $6,158.9 million on Dec 31, 2022. The company hiked its dividend by 8% to 27 cents per share, up from 25 cents per share in the prior quarter.
Capex and R&D expenses for 2023 are envisioned in the band of $625-$675 million and $400-$430 million, respectively.
Zacks Rank & Key Picks
PCAR currently carries a Zacks Rank #2 (Buy).
A few other top-ranked players in the auto space include Lear Corporation (LEA - Free Report) , Oshkosh Corporation (OSK - Free Report) and Ford Motor Company (F - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for LEA’s 2023 sales and earnings implies year-over-year growth of 14.1% and 75.4%, respectively. The EPS estimate for 2023 has moved north by 20 cents in the past seven days. The 2024 EPS estimate has moved up by 8 cents in the past seven days.
The Zacks Consensus Estimate for OSK’s 2023 sales and earnings implies year-over-year growth of 8.6% and 295.1%, respectively. The EPS estimate for 2023 has moved up by a cent in the past seven days. The 2024 EPS estimate has remained unchanged in the past seven days.
The Zacks Consensus Estimate for F’s 2023 sales implies year-over-year growth of 4.9%. The 2023 EPS estimate has been revised upward by 4 cents in the past 30 days. The EPS estimate for 2024 has moved north by 3 cents in the past 30 days.