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PACCAR Inc (PCAR - Free Report) is the third-largest manufacturer of heavy-duty trucks in the world. It also has substantial manufacturing exposure to light/medium trucks. The company also provides customer support for its products by supplying aftermarket parts as well as finance and leasing services.
PACCAR benefits from strong operating performance and sizeable market share in the U.S. and Canada. The company’s expansion plans and active capital deployment as well as rising European industry sales also inspire optimism.
However, PACCAR is likely to be affected by the expected decline in Class 8 industry retail sales in the U.S. and Canada this year. It is also facing competition in the commercial trucks market.
Estimate Trend & Surprise History
The Zacks Consensus Estimate for PACCAR for the second quarter has remained stable over the past week but inched down by a cent over the last month.
However, PACCAR has a track record of delivering positive earnings surprises. It has beaten the Zacks Consensus Estimate in 3 of the trailing 4 quarters with an average beat of around 3.07%. Investors have been eagerly awaiting PACCAR’s latest earnings report to see whether it outperforms in this quarter.
PACCAR currently has a Zacks Rank #4 (Sell), but that could change following its earnings report which was just released. We have highlighted some of the key stats from this Washington-based truck manufacturer’s earnings announcement below:
Earnings Top Estimates
PACCAR delivered earnings of $1.06 per share in the second quarter of 2016 that topped the Zacks Consensus Estimate of $1.03. However, earnings were lower than $1.26 in the year-ago quarter.
Revenues Beat Estimates
PACCAR recorded revenues of $4.12 billion, beating the Zacks Consensus Estimate of $4.06 billion but lower than the year-ago revenues of $4.79 billion.
Key Stats/Developments to Note
PACCAR raised the estimate for 2016 industry sales in the above 16-ton truck market in Europe to 280,000–300,000 units from the prior range of 260,000–290,000 units. However, the estimate for Class 8 industry retail sales for the U.S. and Canada in 2016 was lowered to the range of 220,000-240,000 units from the prior estimate of 220,000-250,000 vehicles.
PACCAR announced that its DAF unit is investing $110 million to build a cab paint facility at its factory in Westerlo, Belgium. Meanwhile, Kenworth is investing $17 million at its factory in Chillicothe, OH to build a new automated storage and delivery system for painted cabs, hoods, and sleepers.
Market Reaction
PACCAR’s shares have moved up 1.95% in pre-market trading so far following the release. Clearly, the initial reaction to the report is positive.
Check back later for our full write up on PACCAR’s earnings report!
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PACCAR (PCAR) Q2 Earnings Top Estimates, Fall Y/Y
PACCAR Inc (PCAR - Free Report) is the third-largest manufacturer of heavy-duty trucks in the world. It also has substantial manufacturing exposure to light/medium trucks. The company also provides customer support for its products by supplying aftermarket parts as well as finance and leasing services.
PACCAR benefits from strong operating performance and sizeable market share in the U.S. and Canada. The company’s expansion plans and active capital deployment as well as rising European industry sales also inspire optimism.
However, PACCAR is likely to be affected by the expected decline in Class 8 industry retail sales in the U.S. and Canada this year. It is also facing competition in the commercial trucks market.
Estimate Trend & Surprise History
The Zacks Consensus Estimate for PACCAR for the second quarter has remained stable over the past week but inched down by a cent over the last month.
However, PACCAR has a track record of delivering positive earnings surprises. It has beaten the Zacks Consensus Estimate in 3 of the trailing 4 quarters with an average beat of around 3.07%. Investors have been eagerly awaiting PACCAR’s latest earnings report to see whether it outperforms in this quarter.
PACCAR INC Price and EPS Surprise
PACCAR INC Price and EPS Surprise | PACCAR INC Quote
Zacks Rank
PACCAR currently has a Zacks Rank #4 (Sell), but that could change following its earnings report which was just released. We have highlighted some of the key stats from this Washington-based truck manufacturer’s earnings announcement below:
Earnings Top Estimates
PACCAR delivered earnings of $1.06 per share in the second quarter of 2016 that topped the Zacks Consensus Estimate of $1.03. However, earnings were lower than $1.26 in the year-ago quarter.
Revenues Beat Estimates
PACCAR recorded revenues of $4.12 billion, beating the Zacks Consensus Estimate of $4.06 billion but lower than the year-ago revenues of $4.79 billion.
Key Stats/Developments to Note
PACCAR raised the estimate for 2016 industry sales in the above 16-ton truck market in Europe to 280,000–300,000 units from the prior range of 260,000–290,000 units. However, the estimate for Class 8 industry retail sales for the U.S. and Canada in 2016 was lowered to the range of 220,000-240,000 units from the prior estimate of 220,000-250,000 vehicles.
PACCAR announced that its DAF unit is investing $110 million to build a cab paint facility at its factory in Westerlo, Belgium. Meanwhile, Kenworth is investing $17 million at its factory in Chillicothe, OH to build a new automated storage and delivery system for painted cabs, hoods, and sleepers.
Market Reaction
PACCAR’s shares have moved up 1.95% in pre-market trading so far following the release. Clearly, the initial reaction to the report is positive.
Check back later for our full write up on PACCAR’s earnings report!
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>