PACCAR Inc. (PCAR) is the third-largest manufacturer of heavy-duty trucks in the world. It also has substantial manufacturing exposure to light/medium trucks. The company also provides customer support for its products by supplying aftermarket parts as well as finance and leasing services.
PACCAR has a record of having generated net profit for 75 consecutive years. However, the company is witnessing declining sales in Europe. Moreover, it faces tough competition in the commercial truck markets.
Estimate Trend & Surprise History
Investors should note that the fourth-quarter earnings estimate for PACCAR has been stationary over the past week and month. The Zacks Consensus Estimate has remained static at $1.09 over these periods.
However, PACCAR has a track record of delivering positive earnings surprises. It has beaten the Zacks Consensus Estimate in 3 of the trailing 4 quarters with an average beat of around 1.7%. Investors have been eagerly awaiting PACCAR’s latest earnings report to see whether it makes a clean sweep in 2014 with outperformance in all four quarters.
Zacks Rank
PACCAR currently has a Zacks Rank #2 (Buy), but that could change following its earnings report which was just released. We have highlighted some of the key stats from this Washington-based truck manufacturer’s earnings announcement below:
Earnings
PACCAR raked in earnings of $1.11 per share that topped the Zacks Consensus Estimate of $1.09. Moreover, earnings were higher than 94 cents in the year-ago quarter.
Revenues
PACCAR logged revenues of $5.12 billion, beating the Zacks Consensus Estimate of $4.96 billion as well as $4.6 billion posted a year-ago.
Key Stats/Developments to Note
PACCAR delivered 142,900 vehicles globally in 2014. Class 8 industry retail sales in the U.S. and Canada amounted to 250,000 vehicles in 2014, which was the highest since 2006. Industry sales amounted to 227,000 units in the above 16-ton truck market in Europe and 129,000 units in the heavy-duty truck market in South America.
Industry sales in the above 16-ton truck market in Europe are expected to be in the range of 200,000–240,000 units in 2015. Meanwhile, PACCAR expects Class 8 industry retail sales of 250,000–280,000 vehicles in the U.S. and Canada this year. Further, it expects the industry demand for heavy-duty trucks in South America to range between 110,000–130,000 units in 2015.
Market Reaction
PACCAR’s share price gained 0.06% following the release. Clearly, the initial reaction to the release is positive.
Check back later for our full write up on PACCAR’s earnings report!
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