PACCAR Exceeds Q3 Street Estimates On Higher Truck Deliveries & Investments In Innovations

PACCAR Inc PCAR reported Q3 FY23 sales of $8.23 billion, beating the consensus of $8.01 billion.

PACCAR Financial Services revenues rose to $464.1 million from $371.9 million a year ago.

Global truck deliveries totaled 50,100 units, higher than 44,400 units in the year-ago period.

EPS of $2.34 beat the analyst consensus of $2.12.

The company held $7.44 billion in cash and marketable securities as of September 30, 2023. Operating cash flow for the nine months totaled $3.00 billion.

Preston Feight, CEO said, "PACCAR's third quarter results reflect excellent Truck, Parts and Other gross margins of 19.5% and strong PACCAR Parts profits. PACCAR's investments in innovative new DAF, Kenworth and Peterbilt trucks and enhanced manufacturing efficiency are benefiting truck owners' operating performance and delivering strong financial results. PACCAR Parts' excellent performance is the result of providing industry-leading technology that enhances customer uptime. PACCAR Financial Services achieved strong results due to its high quality portfolio."

Dividend: The Board of Directors declared a quarterly cash dividend of $0.27 per share, payable on December 6, 2023, to stockholders of record as of November 15, 2023.

"Customers are replacing older vehicles with the new fuel-efficient Kenworth and Peterbilt trucks. Infrastructure spending in the U.S. has been good for Kenworth and Peterbilt's truck business. U.S. and Canada Class 8 truck industry retail sales in 2023 are estimated to be in a range of 295,000-315,000 vehicles. Class 8 truck industry retail sales for 2024 are expected to be in a range of 260,000-300,000 vehicles," stated Mike Dozier, executive vice president. 

Price Action: PCAR shares are trading higher by 2.77% at $83.61 on the last check Tuesday.