- Paccar’s second quarter earnings per share (EPS) dropped to $1.37, down from $2.13 a year ago.
- The company’s consolidated revenue was $7.51 billion, reflecting a 14% decrease year-over-year.
- Revenue from Truck, Parts, and Other segments totaled $6.96 billion, which is down 16% from the previous year but slightly above the estimate of $6.89 billion.
- Financial Services revenue increased by 7.4% to $547.7 million, surpassing the estimate of $524.3 million.
- Global truck deliveries totaled 39,300 units, experiencing a 19% decline compared to the previous year, though higher than the estimated 38,583 units.
- Pretax profit reached $931.9 million, a 36% decrease year-over-year, but above the estimated $892.4 million.
- Research and Development (R&D) expenses were $112.9 million, a minor decrease of 3.6% year-over-year, slightly below the estimated $113.3 million.
- Paccar forecasts capital expenditure for the year to be between $750 million and $800 million, an increase from the previous forecast of $700 million to $800 million, with the estimate at $747.8 million.
- The company maintains its R&D expenses forecast at $450 million to $480 million, aligning with the estimate of $450.3 million.
- The North American truck market is experiencing challenges due to economic conditions, tariffs, and a soft truckload market.
- Analyst recommendations for Paccar include 6 buy ratings, 12 hold ratings, and 3 sell ratings.
Paccar Inc on Smartkarma
Analysts on Smartkarma, such as Baptista Research, have been upbeat about Paccar Inc‘s recent financial performance and strategic moves. According to Baptista Research‘s report titled “PACCAR: Tariff Management Strategy to Maintain Stability & Upsurge Revenue!,” Paccar’s first-quarter 2025 earnings revealed revenues of $7.4 billion and adjusted net income of $770 million. Paccar Parts also saw record quarterly revenues of $1.7 billion, showcasing successful expansion and strong market demand.
In another report by Baptista Research, titled “PACCAR Inc.: Can European Market Dynamics Help Capture Share & Boost Revenue In The Region? – Major Drivers,” insights from Paccar Inc‘s fourth-quarter 2024 earnings call were highlighted. For the year 2024, Paccar reported revenues of $33.7 billion and a net income of $4.2 billion, making it the second-highest profit in its history. Analysts point to Paccar’s strength in producing high-quality trucks and transportation solutions, driven by well-established brands like Kenworth, Peterbilt, and DAF Trucks.
A look at Paccar Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Paccar Inc seems to have a promising long-term outlook. With a growth score of 4 out of 5, the company is positioned for potential expansion and development in the future. This indicates positive prospects for Paccar Inc‘s business activities and market presence over the long term.
Furthermore, Paccar Inc‘s overall outlook is solid with balanced scores of 3 across key factors such as value, dividend, resilience, and momentum. This suggests that the company is well-rounded in terms of its financial health, stability, and future prospects. Considering its core business of designing and distributing trucks, along with offering financial services, Paccar Inc appears to be on a steady path towards sustained growth and performance.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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