PACCAR (NASDAQ:PCAR) Posts Earnings Results, Beats Estimates By $0.07 EPS

PACCAR (NASDAQ:PCAR) announced its quarterly earnings results on Tuesday. The company reported $1.43 EPS for the quarter, topping analysts’ consensus estimates of $1.36 by $0.07, Briefing.com reports. The company had revenue of $7.55 billion during the quarter, compared to analyst estimates of $7.05 billion. PACCAR had a return on equity of 12.73% and a net margin of 9.00%.The firm’s revenue was up .5% on a year-over-year basis. During the same quarter last year, the firm posted $1.37 earnings per share.

Here are the key takeaways from PACCAR’s conference call:

• Q2 results improved significantly: Revenue reached $7.5 billion and net income rose 24% sequentially to $752 million, driven by stronger truck performance, favorable price-versus-cost, cost controls, and local-for-local production benefits.
• PACCAR expects truck deliveries to increase from 38,700 in Q2 to approximately 42,000 in Q3, with U.S. and Canadian heavy-truck demand projected at roughly 250,000 units for 2026 and a healthy 2027 market as fleets replace aging equipment.
• PACCAR Parts posted record revenue of $1.75 billion and $417 million in pre-tax income, while parts sales are expected to grow 3%–5% for the full year and trend toward the high end as truck utilization and freight rates improve.
• The EPA’s proposed NOx regulation clarification would allow customers to continue buying current-generation engines next year with estimated $6,000–$7,000 non-conformance fees, which management believes will smooth the transition, support demand, and give manufacturers more time to validate compliant technology.
• Management noted that supplier constraints prevented delivery of several hundred U.S. trucks in Q2, although it expects those units to move through in the third quarter; European summer shutdowns and a shift toward fleet trucks are also expected to temper Q3 margin expansion.

PACCAR Stock Performance

Shares of PACCAR stock traded down $1.68 on Thursday, hitting $132.19. 1,112,321 shares of the company’s stock were exchanged, compared to its average volume of 3,156,676. The company has a debt-to-equity ratio of 0.52, a quick ratio of 2.91 and a current ratio of 1.82. The stock has a market capitalization of $69.57 billion, a PE ratio of 27.76, a PEG ratio of 1.27 and a beta of 0.97. PACCAR has a 1 year low of $92.25 and a 1 year high of $139.24. The company has a 50-day simple moving average of $120.46 and a 200-day simple moving average of $120.68.

PACCAR Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 2nd. Investors of record on Wednesday, August 12th will be issued a $0.35 dividend. The ex-dividend date of this dividend is Wednesday, August 12th. This represents a $1.40 dividend on an annualized basis and a dividend yield of 1.1%. PACCAR’s dividend payout ratio (DPR) is presently 29.79%.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Compound Planning Inc. boosted its holdings in PACCAR by 10.0% during the 4th quarter. Compound Planning Inc. now owns 6,889 shares of the company’s stock valued at $754,000 after acquiring an additional 625 shares during the period. Invesco Ltd. boosted its stake in shares of PACCAR by 1.5% during the fourth quarter. Invesco Ltd. now owns 5,478,934 shares of the company’s stock valued at $599,998,000 after purchasing an additional 82,046 shares in the last quarter. Corient Private Wealth LLC boosted its position in PACCAR by 6.1% during the fourth quarter. Corient Private Wealth LLC now owns 1,403,105 shares of the company’s stock valued at $153,177,000 after purchasing an additional 80,323 shares in the last quarter. Mercer Global Advisors Inc. ADV grew its holdings in PACCAR by 2.0% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 200,176 shares of the company’s stock worth $21,921,000 after purchasing an additional 3,892 shares during the last quarter. Finally, EP Wealth Advisors LLC acquired a new stake in PACCAR in the fourth quarter worth about $1,948,000. Hedge funds and other institutional investors own 64.90% of the company’s stock.

Analysts Set New Price Targets

A number of equities analysts recently issued reports on PCAR shares. Sanford C. Bernstein reissued an “outperform” rating and issued a $148.00 price target on shares of PACCAR in a research note on Wednesday. Evercore set a $139.00 target price on PACCAR in a research report on Monday, May 11th. JPMorgan Chase & Co. raised their target price on PACCAR from $155.00 to $164.00 and gave the company an “overweight” rating in a research note on Wednesday. Truist Financial upped their price target on PACCAR from $126.00 to $131.00 and gave the stock a “hold” rating in a research note on Thursday, July 2nd. Finally, Morgan Stanley set a $119.00 price objective on PACCAR in a report on Wednesday. Three equities research analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $130.20.

About PACCAR

PACCAR Inc is a global technology leader in the design, manufacture and customer support of light-, medium- and heavy-duty commercial vehicles. The company’s products are marketed under well-known brand names including Kenworth, Peterbilt and DAF and span vocational and long-haul applications. PACCAR’s core business includes vehicle engineering and assembly as well as the supply of components and proprietary powertrain systems designed to meet regulatory and customer performance requirements.

In addition to truck manufacturing, PACCAR operates a comprehensive aftermarket parts business, distributes used trucks and provides commercial vehicle financing and leasing through its financial services operations.