PACCAR Q4 Earnings Top, Parts Unit Posts Better-Than-Expected Profits

PACCAR Inc. PCAR recorded earnings of $1.68 per share for the fourth quarter of 2024, which beat the Zacks Consensus Estimate of $1.66 but declined from $2.70 per share reported in the year-ago period. Stay up-to-date with the quarterly releases: See Zacks Earnings Calendar.Consolidated revenues (including trucks and financial services) came in at $7.9 billion, down from $9 billion in the corresponding quarter of 2024. Sales from Trucks, Parts and Others were $7.36 billion.PACCAR Inc. Price, Consensus and EPS Surprise PACCAR Inc. price-consensus-eps-surprise-chart | PACCAR Inc. QuoteKey TakeawaysRevenues from the Trucks segment totaled $5.69 billion in the fourth quarter, lower than the prior-year quarter’s $6.97 billion. The metric, however, surpassed our estimate of $5.59 billion. Global truck deliveries came in at 43,900 units, higher than our projection of 42,082 units but lower than 51,100 units delivered in the corresponding quarter of 2023. The segment’s pre-tax income was $503 million, which fell short of our estimate of $608.4 million and plunged 98% year over year.Revenues from the Parts segment totaled $1.67 billion in the reported quarter, up from the year-earlier period’s $1.61 billion. Our estimate was $1.68 billion. The segment’s pre-tax income came in at $428.2 million, down from $432.4 million reported in the year-ago period. The metric, however, topped our forecast of $315.5 million.Financial Services segment revenues came in at $544.3 million, higher than the year-ago quarter’s $484.8 million but lower than our estimate of $588.3 million. Pre-tax income decreased to $104 million from $113 million reported in the year-ago period and also fell short of our projection of $119.7 million.Other sales amounted to $2 million. Selling, general and administrative expenses in the fourth quarter of 2024 decreased to $187.4 million from $194.1 million in the prior-year period. Research & development (R&D) expenses were $115 million compared with the year-earlier quarter’s $156 million.PACCAR’s cash and marketable debt securities amounted to $9.65 billion as of Dec. 31, 2024, compared with $8.66 billion as of Dec. 31, 2023.PACCAR paid a regular quarterly dividend of 30 cents/share along with an extra cash dividend of $3/share during the fourth quarter.Capex and R&D expenses for 2025 are envisioned in the band of $700-$800 million and $460-$500 million, respectively.Zacks Rank & Other Key PicksPACCAR currently carries a Zacks Rank #2 (Buy).Some other top-ranked stocks in the auto space are Geely Automobile Holdings Limited GELYY, Yamaha Motor Co., Ltd. YMHAY and Allison Transmission Holdings, Inc. ALSN, While GELYY sportsa Zacks Rank #1 (Strong Buy), YMHAY and ALSN carry a Zacks Rank #2 each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for GELYY’s fiscal 2025 sales and earnings suggests year-over-year growth of 66.62% and 149.31%, respectively. EPS estimates for fiscal 2025 have improved by 15 cents in the past 30 days.The Zacks Consensus Estimate for YMHAY’s 2025 sales and earnings suggests year-over-year growth of 9% and 19%, respectively. EPS estimates for 2025 have improved by a penny in the past 60 days.The Zacks Consensus Estimate for ALSN’s 2025 sales and earnings suggests year-over-year growth of 6.7% and 11.4%, respectively. EPS estimates for 2025 have improved 3 cents in the past 30 days.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PACCAR Inc. (PCAR): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report Geely Automobile Holdings Ltd. (GELYY): Free Stock Analysis Report Yamaha Motor Co., Ltd. (YMHAY): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks