PACCAR Inc.’s (PCAR - Free Report) fourth-quarter 2018 earnings were $1.65 per share, surpassing the Zacks Consensus Estimate of $1.57. Results were aided by quality products and services, record heavy-duty truck market share in Europe, strong global truck markets, and solid aftermarket parts’ results. Earnings per share in the prior-year quarter were $1.67. Excluding the one-time tax benefits, earnings per share in fourth-quarter 2017 were $1.18.
PACCAR posted quarterly consolidated net sales and revenues of $5.93 billion, up from the prior-year quarter figure of $5.12 billion. The Zacks Consensus Estimate of revenues was $5.8 billion.
Net sales and revenues for 2018 were at a record $23.50 billion, up 21% from the 2017 figure.
Revenues from the Truck, Parts and Other segment increased to $5.93 billion in fourth-quarter 2018 from $5.12 billion in fourth-quarter 2017. The segment’s pre-tax income increased to $645.3 million from $522.9 million recorded a year ago.
Revenues from the Financial Services segment rose to $347 million from $332.2 million a year ago. Pre-tax income increased to $87.2 million from $71.9 million in the year-ago quarter.
PACCAR’s cash and marketable debt securities amounted to $4.30 billion as of Dec 31, 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 were 285,000 units in 2018, up 30% from 218,000 vehicles sold in 2017. For 2019, the United States and Canada Class 8 truck industry retail sales are anticipated to rise to a range of 285,000-315,000.
Zacks Rank & Stocks to Consider
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) , Dana Incorporated (DAN - Free Report) and General Motors Company (GM - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Allison Transmission has an expected long-term growth rate of 10%. Over the past six months, shares of the company have surged 15.2%.
Dana has an expected long-term growth rate of 2.9%. Over the past three months, shares of the company have risen 17.2%.
General Motors has an expected long-term growth rate of 8.5%. Over the past three months, shares of the company have risen 14.6%.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>