PACCAR Inc.


PCAR

reported earnings of $1.47 per share in fourth-quarter 2021, topping the Zacks Consensus Estimate of $1.31 and rising from the year-ago figure of $1.17. Higher-than-expected pre-tax profits across all segments resulted in the outperformance.

Consolidated revenues (including trucks and financial services) came in at $6,686.1 million, up from $5,568.6 million recorded in the corresponding quarter of 2020. Sales from Trucks, Parts and Others came in at $6,295.7 million, beating the consensus mark of $5,383.4 million.

Key Takeaways

Revenues from the Trucks segment totaled $4,961.9 million in the December quarter, higher than the prior-year quarter’s $4,044.8 million. The figure also topped the consensus mark of $4,115 million. The segment’s pre-tax income came in at $192.8 million, falling almost 18% year over year. The reported figure, however, beat the consensus mark of $189 million.

Revenues from the Parts segment totaled $1,312.1 million in the reported quarter, increasing from the year-earlier period’s $1,074.4 million and surpassing the consensus mark of $1,256 million. The segment’s pre-tax income came in at $306.4 million, up from $222.5 million recorded in the year-ago period. The reported figure also topped the consensus mark of $274 million.

Revenues in the Financial Services segment declined to $390.4 million from the year-earlier quarter’s $432.6 million and fell short of the consensus estimate of $446 million. Nonetheless, pre-tax income rose to $134.6 million from $63.8 million, beating the consensus mark of $122 million.

Selling, general and administrative expenses in fourth-quarter 2021 rose to $150.6 million from the prior-year period’s $133.5 million. Research & development (R&D) expenses were $87.1 million in the quarter compared with the year-earlier period’s $71.7 million.

PACCAR’s cash and marketable debt securities amounted to $4,813 million as of Dec 31, 2021, compared with $4,834 million on Dec 31, 2020.

For 2022, capex is projected at $425-$475 million, while R&D expenses are estimated in the $350-$400 million band.

Key Picks

PACCAR currently carries a Zacks Rank #3 (Hold).

Some better-ranked players in the auto space are

Ford


F

and

Tesla


TSLA

, each sporting a Zacks Rank #1 (Strong Buy), and

Genuine Parts


GPC

, carrying a Zacks Rank #2 (Buy) currently. You can see


the complete list of today’s Zacks #1 Rank stocks here

.

Ford has an expected earnings growth rate of 8.11% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 2.7% upward over the past 60 days.

Ford’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. F pulled off a trailing four-quarter earnings surprise of 335.6%, on average. The stock has also rallied 82.9% over a year.

Tesla has an expected earnings growth rate of 35.21% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 5% upward over the past 60 days.

Tesla’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters. TSLA pulled off a trailing four-quarter earnings surprise of 25.38%, on average. The stock has also rallied 7.1% over a year.

Genuine Parts has an expected earnings growth rate of 10.03% for the current year. The Zacks Consensus Estimate for earnings for the current year has been revised around 2.2% upward over the past 60 days.

Genuine Parts’ earnings beat the Zacks Consensus Estimate in all the trailing four quarters. GPC pulled off a trailing four-quarter earnings surprise of 16%, on average. Its shares have gained 29% over a year.

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