BELLEVUE, Wash. - PACCAR Inc (NASDAQ:PCAR), a global leader in the design and manufacture of high-quality commercial vehicles, reported second-quarter earnings that fell short of analyst expectations, causing its shares to decline by 2.79%.
The company announced an earnings per share (EPS) of $2.13, which was $0.01 lower than the analyst estimate of $2.14. Revenue for the quarter was $8.77 billion, significantly surpassing the consensus estimate of $8.33 billion.
Despite the higher revenue, the slight earnings miss led to a negative market response. PACCAR's second-quarter net income of $1.12 billion showed a decrease compared to the $1.22 billion earned in the same period last year. The company's net sales and financial services revenues also saw a slight dip from the $8.88 billion reported in the second quarter of 2023.
PACCAR's CEO, Preston Feight, attributed the robust quarterly sales and profits to the industry-leading trucks and strong aftersales performance that enhanced customer uptime. PACCAR Parts and PACCAR Financial Services also delivered good profitability, contributing to the company's overall financial health.
The company's global truck deliveries totaled 48,400 units. PACCAR Parts reported revenues of $1.66 billion for the quarter, an increase from the $1.60 billion in the same quarter of the previous year. PACCAR Financial Services posted a pretax income of $111.2 million, with revenues of $509.8 million for the quarter.
Looking ahead, PACCAR is investing in new powertrains, advanced manufacturing capabilities, and aftermarket distribution to create value for customers. The company has also begun construction on a new 21-gigawatt hour battery factory in Mississippi through a joint venture, which is expected to start production in 2027.
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