In This Article:
It has been about a month since the last earnings report for Paccar (PCAR). Shares have lost about 4.4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Paccar due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
PACCAR Q4 Earnings Top, Parts Unit Posts Better-Than-Expected Profits
PACCAR 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.
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.
Key Takeaways
Revenues 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.