PACCAR Inc (NASDAQ:PCAR) shares are trading lower after it reported first-quarter FY24 results.
Net sales and revenues for Truck, Parts and other totaled $8.235 billion, and total revenues amounted to $8.74 billion versus the consensus of $8.24 billion.
PACCAR Financial Services revenues rose to $509.3 million from $423.2 million a year ago. EPS of $2.27 beat the analyst consensus of $2.17.
PACCAR invested $164.3 million in capital projects and $105.5 million in research and development expenses in the quarter.
The company held $7.73 billion in cash and marketable securities as of March-end. Operating cash flow for the quarter totaled $1.47 billion.
Preston Feight, chief executive officer, stated, “PACCAR’s long-term investments in new truck models, advanced manufacturing and technology-enabled aftermarket solutions are contributing to PACCAR’s strong operating margins. Customers’ operations benefit from the superior quality and fuel economy of DAF, Peterbilt and Kenworth vehicles. PACCAR is developing next-generation powertrains and connected systems, which will drive aftermarket parts growth, as well as investing in production capacity.”
Executive vice president Mike Dozier said, “North American truck demand is benefiting from increased infrastructure spending. Kenworth and Peterbilt’s industry-leading vocational trucks provide customers with the premium quality and durability required in rigorous construction applications.”
Outlook: PACCAR sees capital expenditures of $700 million-$750 million and research and development expenses of $460 million-$500 million in 2024.
PACCAR sees European above 16-tonne truck industry registrations for 260,000-300,000 trucks in 2024.
The company projects South American above 16-tonne truck market to be 105,000-115,000 trucks in 2024.
PACCAR sees U.S. and Canada Class 8 truck industry retail sales of 250,000-290,000 trucks in 2024.
Investors can gain exposure to the stock via First Trust Nasdaq Transportation ETF (NASDAQ:FTXR) and VictoryShares THB Mid Cap ETF (NASDAQ:MDCP).
Price Action: PCAR shares are down 7.25% at $105.40 at the last check Tuesday.
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