PACCAR Inc.’s PCAR fourth-quarter 2017 adjusted earnings came in at $1.18 per share, up from 82 cents recorded in the year-ago quarter. Earnings surpassed the Zacks Consensus Estimate of $1.12. Results benefited from top quality products and services, and substantial market share in the United States and Canada.
During the quarter, PACCAR generated consolidated net sales and revenues of $5.45 billion. Its revenues from the Truck, Parts and Other segment were $5.12 billion. The Zacks Consensus Estimate for revenues was $4.8 billion.
For 2017, adjusted earnings were $4.26 per share, up from $3.85 recorded in 2016. Earnings surpassed the Zacks Consensus Estimate of $4.19.
In 2017, the company reported record revenues of $19.5 billion, up 14% from 2016.
Segment Results
Revenues from the Truck, Parts and Other segment increased to $5.12 billion in fourth-quarter 2017 from $3.77 billion in fourth-quarter of 2016. The segment’s pre-tax income increased to $522.3 million from $334 million, recorded a year ago.
Revenues from the Financial Services segment (comprising a portfolio of 188,000 trucks and trailers with total assets of $13.2 billion) rose to $332.2 million from $303.7 million a year ago. Pre-tax income decreased to $72.5 million from $77.9 million in the year-ago quarter.
Financial Position
PACCAR’s cash and marketable debt securities amounted to $3.6 billion as of Dec 31, 2017 compared with $2.9 billion as of Dec 31, 2016.
Class 8 Truck Scenario & View
In 2017, retail sales of Class 8 truck in the United States and Canada totaled 218,000 units, up from the 2016 figure of 216,000. Demand for truck is rising on account of strong economic growth, higher consumer spending, and heightened commercial and residential construction activities. The company anticipates 2018 Class 8 truck industry retail sales to increase to a range of 235,000-265,000.
Zacks Rank & Key Picks
PACCAR currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the auto space are Oshkosh Corporation OSK, Daimler A.G. DDAIF and Allison Transmission Holding, Inc. ALSN, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Oshkosh has an expected long-term growth rate of 14.5%. Shares of the company have gained 35.4% in the last six months.
Daimler has an expected long-term growth rate of 2.8%. In the last six months, shares of the company have climbed 32.2%.
Allison Transmission has an expected long-term growth rate of 10%. Shares of the company have increased 20.3% in the last six months.
PACCAR Inc. Price, Consensus and EPS Surprise
PACCAR Inc. Price, Consensus and EPS Surprise | PACCAR Inc. Quote
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