PACCAR Inc. PCAR recorded earnings of $1.85 per share for the third quarter of 2024, which beat the Zacks Consensus Estimate of $1.82 but declined from $2.34 per share recorded in the year-ago period. 

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Consolidated revenues (including trucks and financial services) came in at $8.24 billion, down from $8.70 billion in the corresponding quarter of 2023. Sales from Trucks, Parts and Others were $7.7 billion.

PACCAR Inc. Price, Consensus and EPS Surprise

PACCAR Inc. price-consensus-eps-surprise-chart | PACCAR Inc. Quote

Key Takeaways

Revenues from the Trucks segment totaled $6.02 billion in the third quarter, which was lower than the prior-year quarter’s $6.6 billion but surpassed our estimate of $5.93 billion. Global truck deliveries came in at 44,900 units, higher than our projection of 43,008 units. The segment’s pre-tax income was $630.8 million, which fell short of our estimate of $703.9 million and decreased 34.3% year over year.

Revenues from the Parts segment totaled $1.66 billion in the reported quarter, up from the year-earlier period’s $1.58 billion. Our estimate was $1.65 billion. The segment’s pre-tax income came in at $406.7 million, down from $412.3 million reported in the year-ago period. The metric, however, topped our forecast of $329.1 million.

Financial Services segment revenues came in at $536.1 million, higher than the year-ago quarter’s $464.1 million and our estimate of $530 million. Pre-tax income decreased to $106.5 million from $133.8 million reported in the year-ago period and also fell short of our projection of $129 million.

Other sales amounted to $19.2 million. Selling, general and administrative expenses in the third quarter of 2024 inched up to $144.3 million from $143.6 million in the prior-year period. Research & development (R&D) expenses were $115 million compared with the year-earlier quarter’s $103.5 million.

PACCAR’s cash and marketable debt securities amounted to $9.2 billion as of Sept. 30, 2024, compared with $8.66 million as of Dec. 31, 2023.

The company declared a quarterly dividend of 30 cents per share to be paid on Dec. 4, 2024, to shareholders as of Nov. 13, 2024.

Capex and R&D expenses for 2024 are envisioned in the band of $760-$800 million and $450-$470 million, respectively.

Zacks Rank & Key Picks

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

Some better-ranked stocks in the auto space are Modine Manufacturing Company MOD, BYD Company Limited BYDDY and Suzuki Motor Corporation SZKMY, 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 MOD’s fiscal 2025 sales and earnings suggests year-over-year growth of 8.44% and 18.77%, respectively. Earnings per share (EPS) estimates for fiscal 2025 and 2026 have improved by a penny and 8 cents, respectively, in the past 30 days.

The Zacks Consensus Estimate for BYDDY’s 2024 sales and earnings suggests year-over-year growth of 21.88% and 19.52%, respectively. EPS estimates for 2024 and 2025 have improved by 8 cents and 14 cents, respectively, in the past 30 days.

The Zacks Consensus Estimate for SZKMY’s fiscal 2025 sales and earnings suggests year-over-year growth of 7.36% and 22.51%, respectively. EPS estimates for fiscal 2025 and 2026 have improved by 78 cents and 99 cents, respectively, in the past 60 days.