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PACCAR (PCAR) Q3 Earnings Miss Estimates, Fall Y/Y
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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 third quarter has remained stable over the past month.
Moreover, 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 1.65%. Investors have been eagerly awaiting PACCAR’s latest earnings report to see whether it outperforms in this quarter.
PACCAR currently has a Zacks Rank #3 (Hold), 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 Miss Estimates
PACCAR delivered earnings of 98 cents per share in the third quarter of 2016 that marginally missed the Zacks Consensus Estimate of 99 cents. Moreover, earnings were lower than $1.21 in the year-ago quarter.
Revenues Miss Estimates
PACCAR recorded revenues of $3.95 billion, missing the Zacks Consensus Estimate of $4.13 billion and lower than the year-ago revenues of $4.55 billion.
Key Stats/Developments to Note
PACCAR trimmed the estimate for 2016 industry sales in the above 16-ton truck market in Europe to 290,000–300,000 units from the prior range of 280,000–300,000 units. However, sales are expected to reduce to 260,000-290,000 units in 2017.
Further, the estimate for Class 8 industry retail sales for the U.S. and Canada in 2016 was lowered to the range of 215,000-225,000 units from the prior estimate of 220,000-240,000 vehicles. The same is expected to be 200,000-230,000 vehicles in 2017.
Market Reaction
PACCAR’s shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.
Check back later for our full write up on PACCAR’s earnings report!
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PACCAR (PCAR) Q3 Earnings Miss 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 third quarter has remained stable over the past month.
Moreover, 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 1.65%. 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 #3 (Hold), 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 Miss Estimates
PACCAR delivered earnings of 98 cents per share in the third quarter of 2016 that marginally missed the Zacks Consensus Estimate of 99 cents. Moreover, earnings were lower than $1.21 in the year-ago quarter.
Revenues Miss Estimates
PACCAR recorded revenues of $3.95 billion, missing the Zacks Consensus Estimate of $4.13 billion and lower than the year-ago revenues of $4.55 billion.
Key Stats/Developments to Note
PACCAR trimmed the estimate for 2016 industry sales in the above 16-ton truck market in Europe to 290,000–300,000 units from the prior range of 280,000–300,000 units. However, sales are expected to reduce to 260,000-290,000 units in 2017.
Further, the estimate for Class 8 industry retail sales for the U.S. and Canada in 2016 was lowered to the range of 215,000-225,000 units from the prior estimate of 220,000-240,000 vehicles. The same is expected to be 200,000-230,000 vehicles in 2017.
Market Reaction
PACCAR’s shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.
Check back later for our full write up on PACCAR’s earnings report!
Confidential from Zacks
Beyond this Tale of the Tape, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>