Latest news with #PCAR
Yahoo
2 days ago
- Automotive
- Yahoo
Are Wall Street Analysts Predicting PACCAR Stock Will Climb or Sink?
Bellevue, Washington-based PACCAR Inc. (PCAR) designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks for the over-the-road and off-highway hauling of commercial and consumer goods. With a market cap of $51.6 billion, PACCAR operates through Truck, Parts, and Financial Services segments. The company has notably lagged behind the broader market over the past year. PCAR stock has gained 5.5% over the past 52 weeks and dropped 6.4% on a YTD basis, compared to the S&P 500 Index's ($SPX) 21.1% gains over the past year and 7.9% returns on a YTD basis. More News from Barchart Supermicro's Earnings Selloff Explained: Should You Buy SMCI Stock Now? Amazon's $36M Bet on Quantum Computing: What Investors Need to Know AMD Stock Slips After Q2 Earnings, But Here's Why It's a Buying Opportunity Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! Narrowing the focus, PACCAR has also underperformed the Industrial Select Sector SPDR Fund's (XLI) 23.7% surge over the past 52 weeks and 14.6% gains in 2025. PACCAR's stock prices surged 6.1% and maintained a positive momentum for the next three trading sessions following the release of its Q2 results on Jul. 22. Although its financials remained under pressure during the quarter, they came ahead of Street expectations. PACCAR reported a 15.7% year-over-year decrease in net sales to approximately $7 billion, 2.5% ahead of Street expectations. Meanwhile, its net income plunged by 35.5% to $723.8 million, but its EPS of $1.37 surpassed the consensus estimates by 7%. For the full fiscal 2025, ending in December, analysts expect PCAR to deliver an EPS of $5.30, down 32.9% year-over-year. Further, the company has a mixed earnings surprise history. While it surpassed the Street's bottom-line estimates twice over the past four quarters, it missed the projections on two other occasions. The stock has a consensus 'Moderate Buy' rating overall. Of the 18 analysts covering the stock, opinions include six 'Strong Buys,' 11 'Holds,' and one 'Strong Sell.' This configuration is notably more optimistic than a month ago, when only four analysts gave 'Strong Buy' recommendations and two analysts advocated 'Strong Sell' ratings. On Jul. 23, Truist Securities analyst Jamie Cook maintained a 'Hold' rating on PCAR and lowered the price target from $102 to $98. PCAR's mean price target of $104 represents a modest 6.8% premium. Meanwhile, the Street-high target of $121 suggests a notable 24.3% upside potential from current price levels. On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
22-07-2025
- Automotive
- Yahoo
PACCAR (NASDAQ:PCAR) Posts Better-Than-Expected Sales In Q2
Trucking company PACCAR (NASDAQ:PCAR) reported Q2 CY2025 results beating Wall Street's revenue expectations , but sales fell by 15.7% year on year to $6.96 billion. Its GAAP profit of $1.37 per share was 4.2% above analysts' consensus estimates. Is now the time to buy PACCAR? Find out in our full research report. PACCAR (PCAR) Q2 CY2025 Highlights: Revenue: $6.96 billion vs analyst estimates of $6.79 billion (15.7% year-on-year decline, 2.6% beat) EPS (GAAP): $1.37 vs analyst estimates of $1.31 (4.2% beat) Operating Margin: 10.3%, down from 14.9% in the same quarter last year Free Cash Flow Margin: 8.8%, up from 2.7% in the same quarter last year Market Capitalization: $48.77 billion BELLEVUE, Wash.--(BUSINESS WIRE)--'PACCAR reported good revenues and net income in the first quarter of 2025,' said Preston Feight, chief executive officer. Company Overview Founded more than a century ago, PACCAR (NASDAQ:PCAR) designs and manufactures commercial trucks of various weights and sizes for the commercial trucking industry. Revenue Growth A company's long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Thankfully, PACCAR's 8.6% annualized revenue growth over the last five years was decent. Its growth was slightly above the average industrials company and shows its offerings resonate with customers. Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. PACCAR's recent performance marks a sharp pivot from its five-year trend as its revenue has shown annualized declines of 3.2% over the last two years. PACCAR isn't alone in its struggles as the Heavy Transportation Equipment industry experienced a cyclical downturn, with many similar businesses observing lower sales at this time. This quarter, PACCAR's revenue fell by 15.7% year on year to $6.96 billion but beat Wall Street's estimates by 2.6%. Looking ahead, sell-side analysts expect revenue to decline by 5% over the next 12 months, a slight deceleration versus the last two years. This projection is underwhelming and suggests its products and services will face some demand challenges. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories. Operating Margin PACCAR has been an efficient company over the last five years. It was one of the more profitable businesses in the industrials sector, boasting an average operating margin of 12.5%. Looking at the trend in its profitability, PACCAR's operating margin rose by 2.5 percentage points over the last five years, as its sales growth gave it operating leverage. This quarter, PACCAR generated an operating margin profit margin of 10.3%, down 4.6 percentage points year on year. This contraction shows it was less efficient because its expenses increased relative to its revenue. Earnings Per Share Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. PACCAR's EPS grew at a remarkable 13.1% compounded annual growth rate over the last five years, higher than its 8.6% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded. We can take a deeper look into PACCAR's earnings quality to better understand the drivers of its performance. As we mentioned earlier, PACCAR's operating margin declined this quarter but expanded by 2.5 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its higher earnings; interest expenses and taxes can also affect EPS but don't tell us as much about a company's fundamentals. Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business. For PACCAR, its two-year annual EPS declines of 8.4% mark a reversal from its (seemingly) healthy five-year trend. We hope PACCAR can return to earnings growth in the future. In Q2, PACCAR reported EPS at $1.37, down from $2.13 in the same quarter last year. Despite falling year on year, this print beat analysts' estimates by 4.2%. Over the next 12 months, Wall Street expects PACCAR's full-year EPS of $5.83 to shrink by 12.4%. Key Takeaways from PACCAR's Q2 Results We liked how PACCAR beat analysts' revenue and EPS expectations this quarter. Zooming out, we think this was a solid print. The stock remained flat at $92.61 immediately following the results. Is PACCAR an attractive investment opportunity at the current price? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free.
Yahoo
22-07-2025
- Automotive
- Yahoo
Paccar: Q2 Earnings Snapshot
BELLEVUE, Wash. (AP) — BELLEVUE, Wash. (AP) — Paccar Inc. (PCAR) on Tuesday reported second-quarter net income of $723.8 million. On a per-share basis, the Bellevue, Washington-based company said it had net income of $1.37. The results topped Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of $1.28 per share. The truck maker posted revenue of $7.51 billion in the period. Its adjusted revenue was $6.96 billion, also topping Street forecasts. Six analysts surveyed by Zacks expected $6.79 billion. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on PCAR at Sign in to access your portfolio
Yahoo
18-07-2025
- Business
- Yahoo
Paccar (PCAR) Stock Drops Despite Market Gains: Important Facts to Note
In the latest close session, Paccar (PCAR) was down 1.4% at $94.05. This change lagged the S&P 500's 0.54% gain on the day. At the same time, the Dow added 0.52%, and the tech-heavy Nasdaq gained 0.74%. Shares of the truck maker witnessed a gain of 5.15% over the previous month, beating the performance of the Auto-Tires-Trucks sector with its gain of 0.25%, and the S&P 500's gain of 4.2%. Investors will be eagerly watching for the performance of Paccar in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on July 22, 2025. The company's upcoming EPS is projected at $1.28, signifying a 39.91% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $6.82 billion, indicating a 17.49% decline compared to the corresponding quarter of the prior year. PCAR's full-year Zacks Consensus Estimates are calling for earnings of $5.72 per share and revenue of $27.74 billion. These results would represent year-over-year changes of -27.59% and -12.12%, respectively. Investors should also note any recent changes to analyst estimates for Paccar. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook. Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system. The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.07% rise in the Zacks Consensus EPS estimate. Right now, Paccar possesses a Zacks Rank of #2 (Buy). In terms of valuation, Paccar is currently trading at a Forward P/E ratio of 16.67. This indicates a premium in contrast to its industry's Forward P/E of 11.44. Investors should also note that PCAR has a PEG ratio of 3.52 right now. 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. Automotive - Domestic stocks are, on average, holding a PEG ratio of 1.2 based on yesterday's closing prices. The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry, currently bearing a Zacks Industry Rank of 174, finds itself in the bottom 30% echelons of all 250+ industries. The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Ensure to harness to stay updated with all these stock-shifting metrics, among others, in the next trading sessions. 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
Business Insider
08-07-2025
- Business
- Business Insider
Bernstein Sticks to Their Buy Rating for Paccar (PCAR)
Bernstein analyst David Vernon maintained a Buy rating on Paccar yesterday and set a price target of $107.00. The company's shares closed yesterday at $96.64. Don't Miss TipRanks' Half-Year Sale Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Vernon covers the Industrials sector, focusing on stocks such as United Airlines Holdings, Delta Air Lines, and United Parcel. According to TipRanks, Vernon has an average return of 5.9% and a 57.23% success rate on recommended stocks. The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Paccar with a $100.13 average price target. PCAR market cap is currently $51.27B and has a P/E ratio of 14.81. Based on the recent corporate insider activity of 106 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of PCAR in relation to earlier this year. Most recently, in May 2025, Pierre Breber, a Director at PCAR bought 5,000.00 shares for a total of $448,900.00.
