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Paccar (PCAR) Up 6% Since Last Earnings Report: Can It Continue?
PACCARPACCAR(US:PCAR) ZACKSยท2024-11-21 17:35

Core Viewpoint - PACCAR's Q3 2024 earnings report shows a decline in revenues year-over-year, despite beating earnings expectations, indicating potential challenges ahead for the company [2][3]. Financial Performance - PACCAR reported earnings of $1.85 per share, exceeding the Zacks Consensus Estimate of $1.82 but down from $2.34 per share in the same quarter last year [2]. - Consolidated revenues were $8.24 billion, a decrease from $8.70 billion in Q3 2023 [2]. - Truck segment revenues totaled $6.02 billion, lower than the prior year's $6.6 billion but above the estimate of $5.93 billion [3]. - Parts segment revenues increased to $1.66 billion from $1.58 billion year-over-year, slightly above the estimate of $1.65 billion [4]. - Financial Services segment revenues rose to $536.1 million from $464.1 million in the previous year, surpassing the estimate of $530 million [5]. Income and Expenses - Pre-tax income from the Trucks segment was $630.8 million, down 34.3% year-over-year and below the estimate of $703.9 million [3]. - Pre-tax income for the Parts segment was $406.7 million, slightly down from $412.3 million year-over-year but above the forecast of $329.1 million [4]. - Financial Services pre-tax income decreased to $106.5 million from $133.8 million in the prior year, falling short of the projection of $129 million [5]. - Selling, general and administrative expenses rose to $144.3 million from $143.6 million year-over-year, while R&D expenses increased to $115 million from $103.5 million [6]. Cash Position and Dividends - As of September 30, 2024, PACCAR's cash and marketable debt securities totaled $9.2 billion, up from $8.66 billion at the end of 2023 [6]. - The company declared a quarterly dividend of 30 cents per share, payable on December 4, 2024, to shareholders as of November 13, 2024 [7]. Future Outlook - Estimates for PACCAR have trended downward, with a consensus estimate shift of -8.07% [8][9]. - The company holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [12].