PACCAR (PCAR) to Report Q3 Earnings: What's in the Cards?
PACCAR PCAR is slated to release third-quarter 2023 results on Oct 24, before market open. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share and revenues is pegged at $2.07 and $8.02 billion, respectively.
For the current quarter, the consensus estimate for PACCAR’s earnings per share has increased by a cent in the past seven days. Its bottom-line estimates imply growth of 40.8% from the year-ago reported number.
The Zacks Consensus Estimate for its quarterly revenues suggests a year-over-year increase of 19.9%. Over the trailing four quarters, PACCAR surpassed earnings estimates on all occasions, the average surprise being 15.21%. This is depicted in the graph below:
PACCAR Inc. Price and EPS Surprise
PACCAR Inc. price-eps-surprise | PACCAR Inc. Quote
Q2 Highlights
PACCAR topped the Zacks Consensus Estimate of earnings and revenues in its second-quarter 2023 results.
Its adjusted earnings per share of $2.33 surpassed the consensus metric of $2.14 and rocketed 70% year over year.
Consolidated revenues (including trucks and financial services) came in at $8,881 million, up from $7,158.7 million in the corresponding quarter of 2022. Sales from Trucks, Parts and Others were $8,441.3 million, which surpassed the consensus estimate of $8,280 million.
Earnings Whispers
Our proven model predicts an earnings beat for PACCAR in the quarter to be reported, as it has the right combination of the two key ingredients. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is the case here, as elaborated below.
Earnings ESP: PACCAR has an Earnings ESP of +1.18%. This is because the Most Accurate Estimate is pegged 2 cents higher than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: PCAR currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors at Play
Leading brands, namely Kenworth, DAF and Peterbilt, might have driven the deliveries. The new DAF lineup, comprising the XF, XG and XD models, has improved the company’s product mix.
Our estimate for total truck deliveries is 51,421 units, up from the 44,400 units reported in the prior-year quarter. Our revenue projection for the Truck segment is $6,350.5 million, indicating a rise from $5,198.2 million recorded in the prior-year quarter. Our estimate for pretax profit from the truck segment is $775.9 million, significantly higher than the $430.5 million reported in the year-ago period.
While PACCAR derives the bulk of its revenues from truck sales, it also produces and sells a wide range of parts, including its brand of engines. High truck utilization and an increased average fleet age are positively impacting PACCAR Parts’ results.
Our estimate for revenues from the Parts segment is $1,578 million, indicating a rise from $1,471.5 million recorded in the previous year’s quarter.
The Zacks Consensus Estimate and our pretax profit estimate for the segment are $391.5 million, up from $373.6 million reported in the year-ago period.
Other Stocks With the Favorable Combination
Here are a few players from the auto space that, according to our model, also have the right combination of elements to post an earnings beat this time around.
Allison Transmission Holdings ALSN will release third-quarter 2023 results on Oct 25. The company has an Earnings ESP of +8.19% and a Zacks Rank #2.
The Zacks Consensus Estimate for Allison’s to-be-reported quarter’s earnings and revenues is pegged at $1.71 per share and $759.2 million, respectively. ALSN surpassed earnings estimates on all the occasions, the average surprise being 19.32%.
Oshkosh Corporation OSK will release third-quarter 2023 results on Oct 26. The company has an Earnings ESP of +8.24% and a Zacks Rank #3.
The Zacks Consensus Estimate for Oshkosh’s to-be-reported quarter’s earnings and revenues is pegged at $2.18 per share and $2.46 billion, respectively. OSK surpassed earnings estimates twice in the trailing four quarters and missed twice, the average surprise being 27.45%.
Cummins CMI will release third-quarter 2023 results on Nov 2. The company has an Earnings ESP of +0.48% and a Zacks Rank #3.
The Zacks Consensus Estimate for Cummin’s to-be-reported quarter’s earnings and revenues is pegged at $4.70 per share and $8.19 billion, respectively. CMI surpassed earnings estimates once in the trailing four quarters and missed thrice, the average negative surprise being 5.51%.
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Cummins Inc. (CMI) : Free Stock Analysis Report
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Oshkosh Corporation (OSK) : Free Stock Analysis Report
