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PACCAR's (PCAR) Trucks & Parts Units Exceed Expectations in Q3
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PACCAR (PCAR - Free Report) recorded earnings of $2.34 per share for third-quarter 2023, which surged 59.2% from the year-ago figure. The bottom line also surpassed the Zacks Consensus Estimate of $2.07 per share thanks to higher-than-expected pre-tax profits from Trucks and Parts segments. Consolidated revenues (including trucks and financial services) came in at $8,696.4 million, up from $7,058.9 million in the corresponding quarter of 2022. Sales from Trucks, Parts and Others were $8,232.3 million, which surpassed the Zacks Consensus Estimate of $8,063.2 million.
Revenues from the Trucks segment totaled $6,636.4 million in the September quarter, higher than the prior-year quarter’s $5,198.2 million and crossed our estimate of $6,350.5 million. Global truck deliveries came in at 50,100 units. The segment’s pre-tax income was $960.9 million, outpacing our estimate of $776 million and increasing a whopping 123% year over year.
Revenues from the Parts segment totaled $1,582.2 million in the reported quarter, increasing from the year-earlier period’s $1,471.5 million and surpassing our estimate of $1,578 million. The segment’s pre-tax income came in at $412.3 million, up 10.6% on a year-over-year basis, beating our forecast of $391.2 million.
Revenues of the Financial Services segment came in at $464.1 million compared with the year-ago quarter’s $371.9 million and topped our estimate of $420.5 million. Pre-tax income decreased to $133.8 million from $146.2 million reported in the year-ago period and fell short of our projection of $153 million.
Other sales amounted to $13.7 million. Selling, general and administrative expenses in third-quarter 2023 increased to $182.3 million, up from $171 million in the prior-year period. Research & development (R&D) expenses were $103.5 million compared with the year-earlier quarter’s $82.9 million.
PACCAR’s cash and marketable debt securities amounted to $7,440 million as of Sep 30, 2023, compared with $6,158.9 million on Dec 31, 2022. The company declared a quarterly dividend of 27 cents per share, payable on Dec 6 to shareholders as of Nov 15.
Capex and R&D expenses for 2023 are envisioned in the band of $650-$675 million and $410-$420 million, respectively. For 2024, capex and R&D costs are estimated in the range of $675-$725 million and $470-$520 million, respectively.
The Zacks Consensus Estimate for TM’s fiscal 2024 sales and EPS implies year-over-year growth of 10.5% and 27.5%, respectively. The earnings estimate for fiscal 2024 and 2025 has been revised upward by 18 cents and 37 cents in the past seven days.
The Zacks Consensus Estimate for HMC’s fiscal 2024 sales and EPS implies year-over-year growth of 7.7% and 27.7%, respectively. The earnings estimate for fiscal 2025 has been revised upward by 5 cents in the past seven days.
The Zacks Consensus Estimate for NSANY’s fiscal 2024 EPS implies year-over-year growth of 12.6%. The earnings estimate for fiscal 2024 and 2025 has been revised upward by 10 cents and 3 cents in the past seven days.
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PACCAR's (PCAR) Trucks & Parts Units Exceed Expectations in Q3
PACCAR (PCAR - Free Report) recorded earnings of $2.34 per share for third-quarter 2023, which surged 59.2% from the year-ago figure. The bottom line also surpassed the Zacks Consensus Estimate of $2.07 per share thanks to higher-than-expected pre-tax profits from Trucks and Parts segments. Consolidated revenues (including trucks and financial services) came in at $8,696.4 million, up from $7,058.9 million in the corresponding quarter of 2022. Sales from Trucks, Parts and Others were $8,232.3 million, which surpassed the Zacks Consensus Estimate of $8,063.2 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 $6,636.4 million in the September quarter, higher than the prior-year quarter’s $5,198.2 million and crossed our estimate of $6,350.5 million. Global truck deliveries came in at 50,100 units. The segment’s pre-tax income was $960.9 million, outpacing our estimate of $776 million and increasing a whopping 123% year over year.
Revenues from the Parts segment totaled $1,582.2 million in the reported quarter, increasing from the year-earlier period’s $1,471.5 million and surpassing our estimate of $1,578 million. The segment’s pre-tax income came in at $412.3 million, up 10.6% on a year-over-year basis, beating our forecast of $391.2 million.
Revenues of the Financial Services segment came in at $464.1 million compared with the year-ago quarter’s $371.9 million and topped our estimate of $420.5 million. Pre-tax income decreased to $133.8 million from $146.2 million reported in the year-ago period and fell short of our projection of $153 million.
Other sales amounted to $13.7 million. Selling, general and administrative expenses in third-quarter 2023 increased to $182.3 million, up from $171 million in the prior-year period. Research & development (R&D) expenses were $103.5 million compared with the year-earlier quarter’s $82.9 million.
PACCAR’s cash and marketable debt securities amounted to $7,440 million as of Sep 30, 2023, compared with $6,158.9 million on Dec 31, 2022. The company declared a quarterly dividend of 27 cents per share, payable on Dec 6 to shareholders as of Nov 15.
Capex and R&D expenses for 2023 are envisioned in the band of $650-$675 million and $410-$420 million, respectively. For 2024, capex and R&D costs are estimated in the range of $675-$725 million and $470-$520 million, respectively.
Zacks Rank & Other Key Picks
PCAR currently carries a Zacks Rank #2 (Buy).
A few other top-ranked players in the auto space include Toyota (TM - Free Report) , Honda (HMC - Free Report) and Nissan (NSANY - 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 TM’s fiscal 2024 sales and EPS implies year-over-year growth of 10.5% and 27.5%, respectively. The earnings estimate for fiscal 2024 and 2025 has been revised upward by 18 cents and 37 cents in the past seven days.
The Zacks Consensus Estimate for HMC’s fiscal 2024 sales and EPS implies year-over-year growth of 7.7% and 27.7%, respectively. The earnings estimate for fiscal 2025 has been revised upward by 5 cents in the past seven days.
The Zacks Consensus Estimate for NSANY’s fiscal 2024 EPS implies year-over-year growth of 12.6%. The earnings estimate for fiscal 2024 and 2025 has been revised upward by 10 cents and 3 cents in the past seven days.