PACCAR (PCAR) Ends 2022 on Strong Note With Q4 Earnings Beat
PACCAR Inc.’s PCAR earnings of $2.64 per share for fourth-quarter 2022 beat the Zacks Consensus Estimate of $2.23 and rocketed 80% from the year-ago figure. Higher-than-expected pretax income from Trucks, Parts and Financial Services segments resulted in the outperformance.
Consolidated revenues (including trucks and financial services) came in at $8,129.5 billion, up from $6,686.1 million recorded in the corresponding quarter of 2021. Sales from Trucks, Parts and Others were $7,734.7 million, which surpassed the consensus mark of $7,036.8 million.
For the full year, PACCAR reported record consolidated revenues of $28.82 billion. It also generated a record net income of $3.01 billion.
PACCAR Inc. Price, Consensus and EPS Surprise
PACCAR Inc. price-consensus-eps-surprise-chart | PACCAR Inc. Quote
Revenues from the Trucks segment totaled $6,254.5 million in the December quarter, higher than the prior-year quarter’s $4,961.9 million. The figure also crossed the consensus mark of $5,533 million. The segment’s pre-tax income was $624 million, surpassing the consensus mark of $488 million and increasing a whopping 215% year over year.
Revenues from the Parts segment totaled $1,469.2 million in the reported quarter, increasing from the year-earlier period’s $1,312.1 million and surpassing the consensus mark of $1,439 million. The segment’s pre-tax income came in at $380 million, up 23% on a year-over-year basis. The metric also outpaced the consensus mark of $372 million.
Revenues of the Financial Services segment came in at $394.8 million compared with the year-ago quarter’s $390.4 million and topped the consensus estimate of $374 million. Pre-tax income rose to $151.3 million from $134.6 million and came higher than the consensus mark of $130 million.
Other sales amounted to $11 million. Pretax income from the unit rose to $20.7 million from $18.4 million in the year-ago period.
Selling, general and administrative expenses in fourth-quarter 2022 inched up to $194.8 million from the prior-year period’s $182.7 million. Research & development (R&D) expenses were $99.9 million compared with the year-earlier quarter’s $87.1 million.
PACCAR’s cash and marketable debt securities amounted to $6,158.9 million as of Dec 31, 2022, compared with $4,813 million on Dec 31, 2021.
Capex and R&D expenses for 2023 are envisioned in the band of $525-$575 million and $360-$410 million, respectively.
The company declared cash dividends of $4.19 per share in 2022. This included $2.80/share extra cash dividend, which was paid on Jan 5, 2023. PACCAR announced a 50% stock dividend in December and will issue the new shares on Feb 7.
Zacks Rank & Key Picks
PACCAR currently carries a Zacks Rank #3 (Hold).
A few better-ranked players in the auto space include Harley Davidson HOG and Fox Factory Holdings FOXF. Both companies currently carry a Zacks Rank #2 (Buy).
Harley Davidson is one of the leading motorcycle makers in the world. The Zacks Consensus Estimate for HOG’s 2022 earnings and sales implies year-over-year growth of 12.7% and 7.5%, respectively. Over the trailing four quarters, HOG surpassed earnings estimates thrice and missed on the other occasion, the average being 43.2%.
Fox Factory is a manufacturer and marketer of suspension products used primarily on mountain bikes, side-by-side vehicles, on-road vehicles, off-road vehicles, all-terrain vehicles, snowmobiles, specialty vehicles and applications and motorcycles. The Zacks Consensus Estimate for FOXF’s 2022 earnings and sales implies year-over-year growth of 17.1% and 21.3%, respectively. Over the trailing four quarters, Fox Factory surpassed earnings estimates on all occasions, the average being 9.09%.
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