John Deo

PACCAR Inc. (NASDAQ:PCAR) Earnings Report Analysis

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    Posted by John Deo Jan 30 - Filed in General - #financialmodelingprep  - 12 views
    • PACCAR reported earnings per share (EPS) of $1.66, missing the estimated $1.70 and marking a significant decline from the previous year's $2.70 EPS.
    • The company's revenue for the quarter was approximately $7.36 billion, falling short of the estimated $7.59 billion and representing a 14.3% decline year-over-year.
    • Despite the quarterly misses, PACCAR's annual revenues for 2024 were $33.66 billion, showcasing strong performance in its truck manufacturing and financial services sectors.

    PACCAR Inc. (NASDAQCAR) is a leading global technology company in the design, manufacture, and customer support of high-quality light-, medium-, and heavy-duty trucks under the Kenworth, Peterbilt, and DAF nameplates. The company also provides financial services and distributes truck parts related to its principal business. PACCAR operates in the competitive Zacks Automotive - Domestic industry, where it faces competition from other major truck manufacturers.

    On January 28, 2025, PACCAR reported earnings per share (EPS) of $1.66, which was slightly below the estimated $1.70. This represents a significant decline from the $2.70 EPS reported in the same quarter the previous year. The earnings report resulted in a negative surprise of 1.19%, as highlighted by Zacks. Despite this, PACCAR has managed to exceed consensus EPS estimates twice in the past four quarters.

    The company generated revenue of approximately $7.36 billion for the quarter ending December 2024, falling short of the estimated $7.59 billion. This revenue figure marks a 14.3% decline compared to the same period the previous year, when PACCAR reported $8.59 billion. The revenue missed the Zacks Consensus Estimate of $7.44 billion by 1.04%. Despite this, PACCAR has exceeded consensus revenue estimates twice in the last four quarters.

    PACCAR's financial performance in 2024 was marked by strong annual revenues and net income, as announced by CEO Preston Feight. The company's success is attributed to the enhanced profitability of its latest generation of DAF, Peterbilt, and Kenworth trucks, alongside record revenues and profits from PACCAR Parts and solid financial services performance. For the entire year of 2024, PACCAR's revenues were $33.66 billion, slightly down from $35.13 billion in 2023.

    PACCAR's financial metrics include a price-to-earnings (P/E) ratio of approximately 13.54 and a price-to-sales ratio of around 1.70. The company's enterprise value to operating cash flow ratio stands at about 12.83, with an earnings yield of approximately 7.38%. Additionally, PACCAR maintains a current ratio of roughly 1.67, indicating its ability to cover short-term liabilities with its short-term assets.

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