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Why Is Paccar (PCAR) Up 7.8% Since Last Earnings Report?
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It has been about a month since the last earnings report for Paccar (PCAR - Free Report) . Shares have added about 7.8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Paccar due for a pullback? 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 catalysts.
PACCAR Q4 Earnings Beat Estimates
PACCAR recorded earnings of $2.70 per share for fourth-quarter 2023, which surged 53.4% from the year-ago figure. The bottom line surpassed the Zacks Consensus Estimate of $2.20 per share. Consolidated revenues (including trucks and financial services) came in at $9,076.6 million, up from $8,129.5 million in the corresponding quarter of 2022. Sales from Trucks, Parts and Others were $8,591.8 million, which surpassed the Zacks Consensus Estimate of $8,190 million.
Key Takeaways
Revenues from the Trucks segment totaled $6,968.7 million in the fourth quarter, higher than the prior-year quarter’s $6,254.5 million and crossing our estimate of $6,391.6 million. Global truck deliveries came in at 51,100 units. The segment’s pre-tax income was $996.4 million, outpacing our estimate of $824.1 million and increasing 59.7% year over year.
Revenues from the Parts segment totaled $1,610.3 million in the reported quarter, increasing from the year-earlier period’s $1,469.2 million and surpassing our estimate of $1,601.7 million. The segment’s pre-tax income came in at $432.4 million, up 13.9% on a year-over-year basis, beating our forecast of $396 million.
Revenues of the Financial Services segment came in at $484.8 million compared with the year-ago quarter’s $394.8 million but lagged our estimate of $490.8 million. Pre-tax income decreased to $113 million from $151.3 million reported in the year-ago period and fell short of our projection of $165.9 million.
Other sales amounted to $12.8 million. Selling, general and administrative expenses in fourth-quarter 2023 decreased to $156 million from $161.8 million in the prior-year period. Research & development (R&D) expenses were $108.9 million compared with the year-earlier quarter’s $99.9 million.
PACCAR’s cash and marketable debt securities amounted to $8,659.3 million as of Dec 31, 2023 compared with $6,158.9 million on Dec 31, 2022. The company declared a quarterly dividend of $3.47 per share.
Capex and R&D expenses for 2024 are envisioned in the band of $700-$750 million and $460-$500 million, respectively.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
VGM Scores
At this time, Paccar has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, 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 broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Paccar has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
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Why Is Paccar (PCAR) Up 7.8% Since Last Earnings Report?
It has been about a month since the last earnings report for Paccar (PCAR - Free Report) . Shares have added about 7.8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Paccar due for a pullback? 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 catalysts.
PACCAR Q4 Earnings Beat Estimates
PACCAR recorded earnings of $2.70 per share for fourth-quarter 2023, which surged 53.4% from the year-ago figure. The bottom line surpassed the Zacks Consensus Estimate of $2.20 per share. Consolidated revenues (including trucks and financial services) came in at $9,076.6 million, up from $8,129.5 million in the corresponding quarter of 2022. Sales from Trucks, Parts and Others were $8,591.8 million, which surpassed the Zacks Consensus Estimate of $8,190 million.
Key Takeaways
Revenues from the Trucks segment totaled $6,968.7 million in the fourth quarter, higher than the prior-year quarter’s $6,254.5 million and crossing our estimate of $6,391.6 million. Global truck deliveries came in at 51,100 units. The segment’s pre-tax income was $996.4 million, outpacing our estimate of $824.1 million and increasing 59.7% year over year.
Revenues from the Parts segment totaled $1,610.3 million in the reported quarter, increasing from the year-earlier period’s $1,469.2 million and surpassing our estimate of $1,601.7 million. The segment’s pre-tax income came in at $432.4 million, up 13.9% on a year-over-year basis, beating our forecast of $396 million.
Revenues of the Financial Services segment came in at $484.8 million compared with the year-ago quarter’s $394.8 million but lagged our estimate of $490.8 million. Pre-tax income decreased to $113 million from $151.3 million reported in the year-ago period and fell short of our projection of $165.9 million.
Other sales amounted to $12.8 million. Selling, general and administrative expenses in fourth-quarter 2023 decreased to $156 million from $161.8 million in the prior-year period. Research & development (R&D) expenses were $108.9 million compared with the year-earlier quarter’s $99.9 million.
PACCAR’s cash and marketable debt securities amounted to $8,659.3 million as of Dec 31, 2023 compared with $6,158.9 million on Dec 31, 2022. The company declared a quarterly dividend of $3.47 per share.
Capex and R&D expenses for 2024 are envisioned in the band of $700-$750 million and $460-$500 million, respectively.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
VGM Scores
At this time, Paccar has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, 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 broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Paccar has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.