Latest news with #PrestonFeight
Yahoo
22-07-2025
- Automotive
- Yahoo
PACCAR CEO Optimistic About Growth Despite Soft Truckload Market, Tariff Concerns
PACCAR Inc. (NASDAQ:PCAR) shares surged higher on Tuesday after the truck manufacturer reported second-quarter earnings that beat analyst expectations, even as quarterly sales narrowly missed estimates and overall revenues declined year-over-year. The company reported second-quarter earnings per share of $1.37, beating the analyst consensus estimate of $1.34. Quarterly sales of $6.962 billion missed the Street view of $6.979 billion. Net sales and financial services revenues were $7.51 billion in the second quarter, compared to $8.77 billion in the second quarter of 2024. Also Read: Tesla's Battery Boom Faces A Global Shockwave—Thanks To Trump Investment income in the quarter under review decreased to $83.9 million from $95.8 million a year ago. View more earnings on PCAR 'PACCAR's investments in new trucks such as DAF's 2025 truck range, advanced manufacturing, and technology-enabled aftermarket solutions, will support customers' and the company's growth,' said Preston Feight, chief executive officer. The company exited the quarter with cash and marketable securities worth $8.279 billion, lower than $9.649 billion as of December 31, 2024. 'The North American truck market is being affected by economic conditions, the uncertain impact of tariffs, and a soft truckload market. Customer demand in the less-than-truckload and vocational segments, including construction, is good,' Feight added. According to Benzinga Pro, PCAR stock has lost over 11% in the past year. Investors can gain exposure to the stock via iShares Trust iShares U.S. Manufacturing ETF (NYSE:MADE). Price Action: PCAR shares are trading higher by 4.65% to $97.19 at last check Tuesday. Read Next: Photo by RYO Alexandre via Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? This article PACCAR CEO Optimistic About Growth Despite Soft Truckload Market, Tariff Concerns originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Yahoo
22-07-2025
- Automotive
- Yahoo
PACCAR beats quarterly estimates on strong parts demand
-U.S. truckmaker PACCAR beat second-quarter profit and revenue estimates on Tuesday, helped by strong demand in its aftermarket parts segment as more truckers opted to maintain their existing fleet. Shares of the Bellevue, Washington-based company rose 5% in the early hours following the results. Cautious U.S. truck operators have been deferring new purchases due to high interest rates and market uncertainty, fueling demand for aftermarket parts and services. "The North American truck market is being affected by economic conditions, the uncertain impact of tariffs and a soft truckload market," CEO Preston Feight said. However, this rise in demand for parts and services has benefitted manufacturers such as PACCAR, which have been leaning on aftermarket revenue to counter slower sales of new vehicles. PACCAR's revenue from the parts segment rose 3.4% to $1.72 billion during the second quarter from a year ago. The company, which designs and manufactures trucks under brand names Kenworth, Peterbilt and DAF, also relied on cost-saving measures to combat earlier headwinds from import duties. PACCAR reported quarterly adjusted profit of $1.37 per share, surpassing analysts' average estimate of $1.29, according to data compiled by LSEG. Its second-quarter revenue of $7.51 billion beat market expectations of $7.03 billion. Sign in to access your portfolio
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
25-06-2025
- Business
- Yahoo
The 5 Most Interesting Analyst Questions From PACCAR's Q1 Earnings Call
PACCAR's first quarter results were met with a negative market reaction, reflecting challenges in navigating tariff-driven input cost increases and softer market conditions. Management cited that higher costs, largely tied to recently imposed tariffs, could not be fully offset by pricing during the quarter. CEO Preston Feight noted, '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. And so we don't know how they would be affected.' The company pointed to continued strength in its parts and financial services businesses but acknowledged that truck divisions faced margin pressure. 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 Organic Revenue fell 14.6% year on year (1.5% in the same quarter last year) Market Capitalization: $48.17 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Charles Dillard (Bernstein): Asked for detail on how much tariff costs can be passed through to customers and the timing of margin recovery; CEO Preston Feight said the ability to offset tariffs depends on pricing actions and backlog timing, with full recovery taking time as policies evolve. Jamie Cook (Truist): Questioned the root causes of margin disappointment and comfort with inventory levels; Feight clarified that margin pressure mainly stemmed from tariff-related cost increases not fully priced in, while inventories were described as manageable given product mix. Michael Feniger (Bank of America): Inquired about the impact of upcoming EPA emissions changes on cost structure and R&D spend; Feight explained that depending on regulatory outcomes, cost impacts could vary, but PACCAR is prepared with multiple compliant engine options. Tami Zakaria (JPMorgan): Sought clarification on how tariffs affect parts margins and pass-through ability; CFO Harrie Schippers explained that parts pricing can be adjusted more quickly than trucks, so margin impact in this segment is limited. Scott Group (Wolfe Research): Asked whether margin compression in Q2 is a timing issue or reflects limited pricing power; Feight described the main issue as timing between cost increases from tariffs and the later realization of price increases. In the coming quarters, the StockStory team will be monitoring (1) the outcome of ongoing tariff policy investigations and potential changes in U.S. trade restrictions, (2) PACCAR's ability to implement and sustain price increases across its truck and parts businesses, and (3) signs of stabilization or improvement in truck demand—particularly in the North American and European markets. Progress on connected vehicle initiatives and capacity expansions will also be important factors shaping the company's longer-term outlook. PACCAR currently trades at $93.51, up from $92.06 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. 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.
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
