Latest news with #PCAR
Yahoo
29-05-2025
- Automotive
- Yahoo
Paccar (PCAR) Registers a Bigger Fall Than the Market: Important Facts to Note
In the latest market close, Paccar (PCAR) reached $94.05, with a -0.97% movement compared to the previous day. The stock's change was less than the S&P 500's daily loss of 0.56%. On the other hand, the Dow registered a loss of 0.58%, and the technology-centric Nasdaq decreased by 0.51%. Shares of the truck maker have appreciated by 5.18% over the course of the past month, underperforming the Auto-Tires-Trucks sector's gain of 16.76% and the S&P 500's gain of 7.37%. Analysts and investors alike will be keeping a close eye on the performance of Paccar in its upcoming earnings disclosure. On that day, Paccar is projected to report earnings of $1.29 per share, which would represent a year-over-year decline of 39.44%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.81 billion, down 17.63% from the year-ago period. Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.70 per share and revenue of $27.88 billion, indicating changes of -27.85% and -11.69%, respectively, compared to the previous year. Investors might also notice recent changes to analyst estimates for Paccar. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook. Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system. The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 13.94% decrease. At present, Paccar boasts a Zacks Rank of #5 (Strong Sell). With respect to valuation, Paccar is currently being traded at a Forward P/E ratio of 16.67. This represents a premium compared to its industry's average Forward P/E of 10.66. It is also worth noting that PCAR currently has a PEG ratio of 3.52. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Automotive - Domestic industry was having an average PEG ratio of 1.11. The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 218, which puts it in the bottom 12% of all 250+ industries. The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. To follow PCAR in the coming trading sessions, be sure to utilize Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PACCAR Inc. (PCAR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
27-05-2025
- Business
- Yahoo
3 Large-Cap Stocks Skating on Thin Ice
Large-cap stocks have the power to shape entire industries thanks to their size and widespread influence. With such vast footprints, however, finding new areas for growth is much harder than for smaller, more agile players. This dynamic can trouble even the most skilled investors, but luckily for you, we started StockStory to help you navigate these trade-offs and uncover exceptional companies that break the mold. Keeping that in mind, here are three large-cap stocks that may face near-term headwinds and some other investments you should consider instead. Market Cap: $65.21 billion Established in 1968, Royal Caribbean Cruises (NYSE:RCL) is a global cruise vacation company renowned for its innovative and exciting cruise experiences. Why Does RCL Fall Short? Scale is a double-edged sword because it limits the company's growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 9.7% for the last five years Free cash flow margin is forecasted to shrink by 7.1 percentage points in the coming year, suggesting the company will consume more capital to keep up with its competitors Below-average returns on capital indicate management struggled to find compelling investment opportunities Royal Caribbean is trading at $240.33 per share, or 15.7x forward P/E. To fully understand why you should be careful with RCL, check out our full research report (it's free). Market Cap: $48.95 billion Founded more than a century ago, PACCAR (NASDAQ:PCAR) designs and manufactures commercial trucks of various weights and sizes for the commercial trucking industry. Why Does PCAR Worry Us? Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion Projected sales decline of 8.7% for the next 12 months points to a tough demand environment ahead Earnings growth underperformed the sector average over the last two years as its EPS grew by just 1.7% annually PACCAR's stock price of $93.65 implies a valuation ratio of 15.7x forward P/E. If you're considering PCAR for your portfolio, see our FREE research report to learn more. Market Cap: $32.56 billion Holding detailed financial records on over 800 million consumers worldwide and dating back to 1899, Equifax (NYSE:EFX) is a global data analytics company that collects, analyzes, and sells consumer and business credit information to lenders, employers, and other businesses. Why Does EFX Give Us Pause? Expenses have increased as a percentage of revenue over the last five years as its adjusted operating margin fell by 6.8 percentage points Annual earnings per share growth of 4% underperformed its revenue over the last two years, showing its incremental sales were less profitable Underwhelming 10.6% return on capital reflects management's difficulties in finding profitable growth opportunities, and its decreasing returns suggest its historical profit centers are aging At $263 per share, Equifax trades at 33.1x forward P/E. Dive into our free research report to see why there are better opportunities than EFX. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free.
Yahoo
13-05-2025
- Automotive
- Yahoo
PCAR Q1 Earnings Call: Tariff Uncertainty and Margin Pressure Shape Outlook
Trucking company PACCAR (NASDAQ:PCAR) fell short of the market's revenue expectations in Q1 CY2025, with sales falling 16% year on year to $6.91 billion. Its non-GAAP profit of $1.46 per share was 7.5% below analysts' consensus estimates. Is now the time to buy PCAR? Find out in our full research report (it's free). Revenue: $6.91 billion vs analyst estimates of $6.97 billion (16% year-on-year decline, 0.8% miss) Adjusted EPS: $1.46 vs analyst expectations of $1.58 (7.5% miss) Adjusted EBITDA: $863.7 million vs analyst estimates of $946.5 million (12.5% margin, 8.7% miss) Operating Margin: 11.1%, down from 15.9% in the same quarter last year Free Cash Flow Margin: 10.7%, down from 15.5% in the same quarter last year Organic Revenue fell 14.6% year on year (1.5% in the same quarter last year) Market Capitalization: $50.26 billion PACCAR's first quarter results reflected operational challenges related to tariffs and evolving market conditions. Management attributed the revenue and margin declines to the impact of new tariffs on truck components and persistent cost pressures, noting that pricing actions were not sufficient to fully offset these headwinds within the quarter. CEO Preston Feight highlighted, 'Our teams in Denton and Chillicothe have done a great job building trucks for us for the U.S. markets, but there are components that come into those factories from our suppliers, from other countries. We don't know how they would be affected [by tariffs].' Looking ahead, PACCAR's leadership indicated that ongoing tariff policy investigations and changes in emissions regulations are likely to influence demand and profitability over the coming quarters. The company is preparing for a dynamic regulatory environment in both North America and Europe, with management expressing caution about future gross margins and emphasizing continued investment in technology and manufacturing capacity to support long-term growth. PACCAR's management discussed the main factors affecting first quarter performance, focusing on tariffs, product mix, and business segment updates. Margin pressure dominated the discussion, with input costs rising faster than prices and regulatory uncertainty clouding the near-term outlook. Tariff Impacts Drive Margins: New and existing tariffs on truck components increased input costs, which management could not fully offset with price increases during the quarter. The uncertainty around Section 232 investigations was cited as a key risk. Parts Segment Growth: PACCAR Parts achieved record revenues, benefiting from connected vehicle data and ongoing expansion of the parts distribution network. Management expects parts growth to continue, supported by higher pricing and improved customer uptime. Financial Services Resilience: PACCAR Financial Services delivered steady profitability, with portfolio growth and strong credit quality. Used truck demand and pricing improved, and further gains are anticipated as the year progresses. Vocational Truck Mix Advantage: The company's higher exposure to vocational trucks, which are typically used for specialized tasks such as construction, provided stability in sales despite softer conditions in long-haul trucking. Regulatory and Emission Standards: Management noted that potential changes to U.S. and European emissions regulations could alter product demand and cost structures, but stated confidence in PACCAR's technology preparedness to address these changes. Management's outlook for the next several quarters centers on tariff developments, customer demand for new emission-compliant vehicles, and the company's ability to manage costs and pricing in a shifting regulatory landscape. Tariff Policy Changes: Ongoing investigations into Section 232 truck tariffs could either worsen or improve cost pressures, making input costs and pricing power a key focus for upcoming quarters. Emission Regulation Shifts: Anticipated policy decisions on greenhouse gas and NOx standards, particularly in the U.S., may affect customer purchasing patterns and vehicle costs, with potential pre-buy activity ahead of new rules. Connected Services & Parts: Growth in digitally connected vehicle services and expansion of the parts business are expected to provide recurring revenue and margin stability, offsetting some cyclicality in new truck sales. Charles Dillard (Bernstein): Asked about the ability to pass through increased tariff costs to customers, with management confirming only partial pass-through in the short term and highlighting ongoing uncertainty about tariff policy. Jamie Cook (Truist): Sought clarity on margin disappointment versus expectations, to which management attributed margin compression to input cost inflation and the lag in pricing adjustments, especially with existing order backlogs. Michael Feniger (Bank of America): Inquired about the impact of upcoming EPA emissions rules on cost structure and whether PACCAR would adjust spending or investments. Management explained that cost impacts will depend on the specific regulatory path taken. Tami Zakaria (JPMorgan): Questioned how tariffs would affect the parts business, with management noting that parts pricing can be adjusted more quickly than trucks, lessening margin risk relative to the new vehicle segment. Scott Group (Wolfe Research): Probed whether Q2 margin pressure was due to timing of price increases or underlying market weakness, and management responded that the timing mismatch between tariff costs and pricing actions was the primary driver. In the coming quarters, the StockStory team will monitor (1) the outcome of tariff policy reviews and any subsequent changes to input costs, (2) customer order trends in response to evolving emissions regulations, and (3) the pace of growth in the PACCAR Parts and Financial Services segments. We will also track management's ability to align pricing with cost inflation and the effect of any regulatory clarity on forward demand. PACCAR currently trades at a forward P/E ratio of 16.1×. At this valuation, is it a buy or sell post earnings? See for yourself in our free research report. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
Washington Post
29-04-2025
- Business
- Washington Post
Paccar: Q1 Earnings Snapshot
BELLEVUE, Wash. — BELLEVUE, Wash. — Paccar Inc. (PCAR) on Tuesday reported first-quarter profit of $505.1 million. On a per-share basis, the Bellevue, Washington-based company said it had net income of 96 cents. Earnings, adjusted for non-recurring costs, were $1.46 per share. The results did not meet Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of $1.57 per share.
Washington Post
28-01-2025
- Business
- Washington Post
Paccar: Q4 Earnings Snapshot
BELLEVUE, Wash. — BELLEVUE, Wash. — Paccar Inc. (PCAR) on Tuesday reported fourth-quarter net income of $872 million. The Bellevue, Washington-based company said it had profit of $1.66 per share. The results fell short of Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of $1.68 per share.
