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PACCAR (PCAR) Q3 Earnings Surpass Estimates, Improve Y/Y

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PACCAR Inc.’s (PCAR - Free Report) third-quarter 2018 earnings were $1.55 per share, up from $1.14 recorded in the year-ago quarter. Earnings surpassed the Zacks Consensus Estimate of $1.50. Results were aided by robust global truck deliveries and aftermarket sales.

PACCAR posted quarterly consolidated net sales and revenues of $5.76 billion. Its adjusted revenues were $5.42 billion. The Zacks Consensus Estimate of revenues was $5.5 billion.

PACCAR Inc. Price, Consensus and EPS Surprise

 

PACCAR Inc. Price, Consensus and EPS Surprise | PACCAR Inc. Quote

Segmental Results

Revenues from the Truck, Parts and Other segment increased to $5.42 billion in third-quarter 2018 from $4.73 billion in third-quarter 2017. The segment’s pre-tax income increased to $573.6 million from $502.2 million recorded a year ago.

Revenues from the Financial Services segment rose to $339.9 million from $328.2 million a year ago. Pre-tax income increased to $78.8 million from $70.6 million in the year-ago quarter.

Financial Position

PACCAR’s cash and marketable debt securities amounted to $3.79 billion as of Sep 30, 2018, compared with $3.62 billion as of Dec 31, 2017.

Class 8 Truck View

In the United States and Canada, Class 8 truck industry retail sales are anticipated to be 280,000-290,000 vehicles in 2018, up 31% from the 2017 figure. For 2019, this is anticipated to be 280,000-310,000 vehicles.

Zacks Rank & Key Picks

PACCAR currently carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. (ALSN - Free Report) , AB Volvo (VLVLY - Free Report) and Navistar International Corporation . While both Allison Transmission and Volvo sport a Zacks Rank #1 (Strong Buy), Navistar has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Allison Transmission has an expected long-term growth rate of 10%. Over the past six months, shares of the company have surged 23.1%.

Volvo has an expected long-term growth rate of 15%. Over the past two years, shares of the company have risen 35.9%.

Navistar has an expected long-term growth rate of 5%. Over the past two years, shares of the company have risen 50.9%.

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