PACCAR (NASDAQ:PCAR) Issues Earnings Results, Hits Expectations

PACCAR (NASDAQ:PCAR) released its earnings results on Tuesday. The company reported $1.61 earnings per share for the quarter, hitting analysts’ consensus estimates of $1.61, FiscalAI reports. The firm had revenue of $7.38 billion for the quarter, compared to analyst estimates of $7.48 billion. During the same period last year, the business earned $1.12 earnings per share. The firm’s quarterly revenue was up 20.8% compared to the same quarter last year.

Here are the key takeaways from PACCAR’s conference call:

• Strong third-quarter results: Revenue rose 19% year over year to $7.94 billion, while net income increased 44% to $847.5 million. Trucks, Parts, and Financial Services all contributed to the solid performance.
• Paccar expects fourth-quarter truck deliveries to increase to 41,000–43,000 units, with gross margins remaining strong at approximately 14%–15%. Management also projects a larger North American Class 8 market in 2027.
• Paccar Parts delivered record revenue of $1.78 billion, supported by market-share gains, TRP all-makes expansion, fleet services, and dealer growth. Management expects continued Parts growth in the fourth quarter and 2027.
• Supplier capacity constraints limited third-quarter deliveries and created production inefficiencies that may restrain fourth-quarter margins. Management said higher build rates have put pressure on suppliers, although conditions are improving.
• Customer ordering for 2027 is increasing, but demand remains partly dependent on the government’s unresolved emissions-related NCP levels. Fleets generally prefer proven 200-milligram engines before adopting newer lower-NOx technology, leaving first-half 2027 volumes and pricing uncertain.

PACCAR Stock Performance

NASDAQ PCAR opened at $103.73 on Wednesday. The stock has a fifty day moving average of $116.38 and a 200-day moving average of $120.40. The stock has a market capitalization of $54.60 billion, a P/E ratio of 21.79 and a beta of 0.98. PACCAR has a 52 week low of $93.86 and a 52 week high of $139.24.

PACCAR Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, December 2nd. Shareholders of record on Wednesday, November 11th will be given a $0.35 dividend. This represents a $1.40 annualized dividend and a yield of 1.3%. The ex-dividend date is Tuesday, November 10th. PACCAR’s dividend payout ratio (DPR) is presently 29.41%.

Insider Buying and Selling at PACCAR

In other news, VP William Lance Walters sold 1,000 shares of the business’s stock in a transaction dated Friday, July 31st. The stock was sold at an average price of $133.50, for a total transaction of $133,500.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Brice J. Poplawski sold 1,970 shares of the stock in a transaction on Friday, July 31st. The stock was sold at an average price of $132.50, for a total transaction of $261,025.00. Following the completion of the sale, the chief financial officer owned 1,391 shares in the company, valued at approximately $184,307.50. This trade represents a 58.61% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 56,842 shares of company stock valued at $7,565,677. 1.99% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

A number of analysts have commented on the company. Jefferies Financial Group raised their price objective on PACCAR from $120.00 to $140.00 and gave the stock a “hold” rating in a research report on Wednesday, July 29th. Evercore boosted their price objective on PACCAR from $139.00 to $162.00 and gave the company an “outperform” rating in a research report on Thursday, October 8th. Morgan Stanley set a $125.00 price objective on PACCAR and gave the company an “equal weight” rating in a research report on Friday, September 4th. Citigroup cut their target price on PACCAR from $140.00 to $115.00 and set a “neutral” rating for the company in a research note on Monday, October 12th. Finally, Wells Fargo & Company set a $122.00 target price on PACCAR and gave the stock an “equal weight” rating in a research report on Thursday, October 8th. Six analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $133.88.

Key Headlines Impacting PACCAR

Here are the key news stories impacting PACCAR this week:

• Positive Sentiment: Third-quarter net income rose 44% year over year to $847.5 million, while earnings per share increased to $1.61 from $1.12. Revenue also grew approximately 19%–21% year over year, highlighting continued demand for PACCAR’s trucks and parts. PACCAR: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Management’s earnings-call commentary was described as upbeat, with investors focused on a favorable fleet-replacement cycle and a constructive outlook for truck demand. PACCAR Earnings Call Highlights Strong Growth And Outlook
• Neutral Sentiment: Quarterly EPS matched the $1.61 analyst consensus, representing a substantial increase from the prior-year quarter but providing no earnings “beat” to drive a stronger immediate stock reaction. Paccar Matches Q3 Earnings Estimates
• Negative Sentiment: Revenue was reported at $7.38 billion, below the $7.48 billion consensus estimate. The miss may be overshadowing the strong profit growth and is a key reason PCAR has lagged despite solid quarterly results. PACCAR Third-Quarter Earnings Report
• Negative Sentiment: Analyst sentiment remains cautious: Morgan Stanley maintained a Hold rating with a $125 price target, while Truist reduced its target to $124 from $125 and also kept a Hold rating. These actions suggest a balanced risk-reward view rather than a strong near-term catalyst. Truist Adjusts Price Target on PACCAR

PACCAR Company Profile

PACCAR Inc (NASDAQ: PCAR) is a global manufacturer of heavy- and medium-duty trucks. Through its Kenworth, Peterbilt and DAF brands, the company produces vehicles used for long-haul transportation, construction, distribution and other commercial applications. PACCAR also manufactures PACCAR-branded engines and provides related parts and aftermarket support.

The company’s operations extend across North America, Europe, South America, Australia and other international markets. In addition to truck manufacturing, PACCAR operates a worldwide parts distribution network and offers financial services, including retail financing and leasing for trucks and related equipment.