PACCAR Inc. PCAR has reported earnings of $1.17 per share for fourth-quarter 2020, missing the Zacks Consensus Estimate of $1.24. Lower-than-anticipated truck deliveries in the United States and Canada induced this underperformance.

Precisely, the trucking giant delivered 21,100 trucks in the region, lagging the consensus mark of 22,078. The bottom line also fell short of the prior-year quarter’s earnings of $1.53 per share.

Consolidated revenues (including trucks and financial services) came in at $5.57 billion, down from $6.12 billion recorded in the corresponding quarter of 2019. Nonetheless, sales from the Trucks, Parts and Others unit came in at $5,136 million, topping the consensus mark of $5,059 million.

PACCAR Inc. Price, Consensus and EPS Surprise

PACCAR Inc. price-consensus-eps-surprise-chart | PACCAR Inc. Quote

Key Takeaways

Revenues from trucks, parts and others totaled $5,136 million in the December quarter, below the prior-year quarter’s $5,710.9 million. The segment’s pre-tax income declined to $452.3 million from $599.6 million recorded in the year-ago period. Revenues in the financial services segment increased to $432.6 million from the year-earlier quarter’s $406.3 million. Nonetheless, pre-tax income slipped to $63.8 million from $68.1 million recorded in the year-earlier period.

Selling, general and administrative expenses during fourth-quarter 2020 declined 9.6% to $165.5 million on a year-over-year basis. Research & Development (R&D) expenses came in at $71.7 million during the final quarter of 2020 compared with the year-earlier quarter’s $83.6 million.

In 2020, PACCAR declared a dividend of $1.98 per share including 70 cents/share extra cash dividend, which was paid this month.

PACCAR’s cash and marketable debt securities amounted to $4,834 million as of Dec 31, 2020, compared with $5,169.4 million as of Dec 31, 2019.

For 2021, capex is projected at $575-$625 million while R&D expenses are estimated in the $350-$375 million band. This currently Zacks Rank #3 (Hold) player shares space with other biggies including Ford F, General Motors GM and Tesla TSLA.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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