PACCAR Q3 Earnings Beat Estimates, Stock Dips Amid Lower Deliveries
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PACCAR Inc. (NASDAQ:PCAR) shares are trading lower on Tuesday.
The company reported third-quarter earnings per share of $1.85, beating the street view of $1.82. Quarterly sales of $7.70 billion, beating the analyst consensus estimate of $7.65 billion.
PACCAR achieved net income of $972.1 million, compared to $1.23 billion in the same period last year.
Global truck deliveries in the quarter under review totaled 44,900 units, lower than 50,100 units in the year-ago period.
“Kenworth and Peterbilt’s strong 31.1% market share this year reflects the superior quality and operating performance of our trucks,” said Kevin Baney, PACCAR senior vice president. “Strong infrastructure spending in the U.S. has been good for Kenworth and Peterbilt’s business due to our market share leadership in vocational trucks.”
The company noted that the less-than-truckload segment is performing well, while the truckload segment is weak.
PACCAR estimates that U.S. and Canada Class 8 truck industry retail sales will be between 250,000 and 270,000 vehicles in 2024, and between 250,000 and 280,000 vehicles in 2025.
PACCAR will open its new 240,000 square-foot PDC in Massbach, Germany, in November. This PDC will expedite parts delivery to dealers and customers in the region.
The company exited the quarter with cash and equivalents worth $6.849 billion.
PACCAR estimates that it will invest $700 million – $800 million in capital projects and $480 million – $530 million in research and development expenses in 2025.
Price Action: PCAR shares are trading lower by 5.98% to $103.06 at last check Tuesday.
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