PACCAR (PCAR) Q4 Earnings & Sales Beat Estimates, Rise Y/Y

PACCAR Inc. PCAR recorded earnings of $2.70 per share for fourth-quarter 2023, which surged 53.4% from the year-ago figure. The bottom line surpassed the Zacks Consensus Estimate of $2.20 per share.

Consolidated revenues (including trucks and financial services) came in at $9,076.6 million, up from $8,129.5 million in the corresponding quarter of 2022. Sales from Trucks, Parts and Others were $8,591.8 million, which surpassed the Zacks Consensus Estimate of $8,190 million.

Key Takeaways

Revenues from the Trucks segment totaled $6,968.7 million in the fourth quarter, higher than the prior-year quarter’s $6,254.5 million and crossing our estimate of $6,391.6 million. Global truck deliveries came in at 51,100 units. The segment’s pre-tax income was $996.4 million, outpacing our estimate of $824.1 million and increasing 59.7% year over year.

Revenues from the Parts segment totaled $1,610.3 million in the reported quarter, increasing from the year-earlier period’s $1,469.2 million and surpassing our estimate of $1,601.7 million. The segment’s pre-tax income came in at $432.4 million, up 13.9% on a year-over-year basis, beating our forecast of $396 million.

Revenues of the Financial Services segment came in at $484.8 million compared with the year-ago quarter’s $394.8 million but lagged our estimate of $490.8 million. Pre-tax income decreased to $113 million from $151.3 million reported in the year-ago period and fell short of our projection of $165.9 million.

Other sales amounted to $12.8 million. Selling, general and administrative expenses in fourth-quarter 2023 decreased to $156 million from $161.8 million in the prior-year period. Research & development (R&D) expenses were $108.9 million compared with the year-earlier quarter’s $99.9 million.

PACCAR’s cash and marketable debt securities amounted to $8,659.3 million as of Dec 31, 2023 compared with $6,158.9 million on Dec 31, 2022. The company declared a quarterly dividend of $3.47 per share.

Capex and R&D expenses for 2024 are envisioned in the band of $700-$750 million and $460-$500 million, respectively.

Zacks Rank & Key Picks

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

Some better-ranked players in the auto space are Volvo VLVLY, Bridgestone Corporation BRDCY and Honda Motor Co., Ltd. HMC, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for VLVLY’s 2023 sales and earnings suggests year-over-year growth of 4.2% and 73.1%, respectively. The EPS estimates for 2023 and 2024 have improved by 4 cents and 3 cents, respectively, in the past 30 days.

The Zacks Consensus Estimate for BRDCY’s 2023 earnings implies year-over-year growth of 5.3%. The EPS estimate for 2024 has moved up by 8 cents in the past 60 days.

The Zacks Consensus Estimate for HMC’s 2024 sales and earnings suggests year-over-year growth of 14.8% and 35%, respectively. The EPS estimate for 2024 has improved by 9 cents in the past 30 days. The EPS estimate for 2025 has improved by 7 cents in the past seven days.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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