- Paccar’s Q3 truck, parts, and other revenue beat estimates at $7.70 billion, surpassing the expected $7.44 billion despite a year-over-year decline of 6.4%.
- Consolidated revenue reached $8.24 billion, marking a 5.2% decrease from the previous year.
- Financial Services revenue rose by 16% year-over-year to $536.1 million, exceeding the estimate of $494.8 million.
- Global truck deliveries dropped by 10% year-over-year to 44,900 units, yet they surpassed the estimate of 43,840 units.
- Pretax profit stood at $1.26 billion, a 21% decline from the previous year, but slightly above the forecasted $1.24 billion.
- Research & Development expenses increased by 11% year-over-year to $115.0 million, which was below the anticipated $121.2 million.
- Analyst recommendations include 5 buys, 12 holds, and 2 sells.
Paccar Inc on Smartkarma
Analysts on Smartkarma, like Baptista Research, are bullish on PACCAR Inc., a company that recently reported strong financial results for the second quarter of 2024. Despite mixed market conditions, PACCAR Inc. achieved revenues of $8.8 billion and net income of $1.12 billion. Of particular note was the significant revenue increase in PACCAR Parts, reaching $1.7 billion with pretax profits of $414 million, showcasing operational efficiency with a 30.3% gross margin.
Baptista Research also highlighted PACCAR Inc.’s market share growth across different segments, noting a rise from 8.6% to 10.7% in the first quarter. The popularity of DAF trucks in South America has contributed to the company’s success in the region. Additionally, PACCAR’s recent announcement of a commercial vehicle battery joint venture signifies its commitment to innovation and expanding its market presence.
A look at Paccar Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Paccar Inc seems to have a promising long-term outlook. With a Growth score of 4 and a Momentum score of 4, the company appears to be on a trajectory for expansion and positive market performance. Coupled with a Value score of 3 and a Resilience score of 3, Paccar Inc demonstrates a solid foundation and the ability to weather economic fluctuations. However, its Dividend score of 2 suggests that the company may not be as strong in terms of providing returns to shareholders through dividends.
Paccar Inc, a company that designs, manufactures, and distributes a variety of trucks across different weight classes, also provides finance and leasing services to its customers and dealers. This diversified business model could contribute to its overall resilience and growth potential in the industry. With its favorable Growth and Momentum scores, Paccar Inc appears well-positioned to capitalize on market opportunities and sustain its competitive edge in the long run.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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