PACCAR Inc. 's PCAR first-quarter 2018 adjusted earnings were $1.45 per share, up from 88 cents recorded in the year-ago quarter. Earnings surpassed the Zacks Consensus Estimate of $1.31. Results were aided by record quarterly truck deliveries, robust Parts revenues and pretax profits.
During the quarter, PACCAR posted quarterly consolidated net sales and revenues of $5.65 billion. Its revenues from the Truck, Parts and Other segment were $5.32 billion. The Zacks Consensus Estimate of revenues was $5.03 billion.
Revenues from the Truck, Parts and Other segment increased to $5.32 billion in first-quarter 2018 from $3.94 billion in first-quarter 2017. The segment's pre-tax income increased to $591.9 million from $383.3 million, recorded a year ago.
Revenues from the Financial Services segment (comprising a portfolio of 187,000 trucks and trailers with total assets of $13.59 billion) rose to $332.2 million from $302.2 million a year ago. Pre-tax income increased to $67.5 million from $56.8 million in the year-ago quarter.
PACCAR's cash and marketable debt securities amounted to $3.47 billion as of Mar 31, 2018, compared with $3.62 billion as of Dec 31, 2017.
Class 8 Truck Scenario & View
Class 8 truck industry orders more than doubled in first-quarter 2018, on a year-over-year basis. This indicates a robust economy and strong freight demand. The company raised estimates of 2018 Class 8 truck industry retail sales for the U.S. and Canada to 265,000-285,000 vehicles, up from the previous range of 235,000-265,000 trucks.
Zacks Rank & Key Picks
PACCAR currently carries a Zacks Rank #3 (Hold).
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PACCAR Inc. Price, Consensus and EPS Surprise
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