Why Truck Manufacturer PACCAR Shares Are Up Today

PACCAR Inc PCAR shares are trading higher after it reported fourth-quarter FY23 sales of $8.59 billion, beating the consensus of $8.35 billion.

PACCAR Financial Services revenues rose to $484.8 million from $394.8 million a year ago. EPS of $2.70 beat the analyst consensus of $2.22.

Globally, the company delivered a record of 204,200 vehicles in the year. The company witnessed Class 8 truck industry retail sales in the U.S. and Canada of 297,000 units in 2023.

PACCAR invested $698 million in capital projects and $411 million in research and development expenses in the year. 

The company held $8.66 billion in cash and marketable securities as of December 31, 2023. Operating cash flow for the year totaled $4.19 billion.

Outlook: PACCAR expects Class 8 truck industry retail sales in the U.S. and Canada to be 260,000-300,000 trucks in 2024.

Harald Seidel, DAF president, said, “Customers appreciate the industry-leading fuel efficiency and driver comfort of the new generation of DAF trucks. DAF trucks have a unique competitive advantage in the Europe truck market due to an innovative, aerodynamic design with a spacious, luxurious cab interior.” 

PACCAR sees European above 16-tonne truck industry registrations for 260,000-300,000 trucks in 2024.

The Board of Directors recently declared a quarterly cash dividend of $0.27 per share, payable on March 6, 2024, to stockholders of record as of February 15, 2024.

The company paid an extra cash dividend of $3.20 per share on January 4, 2024, to stockholders of record as of December 15, 2023.

Also Read: Sector Shifts: Bank of America Analyst Forecasts Challenging 2024 for Machinery, Downgrades Cummins and GFL, Upgrades PACCAR

Price Action: PCAR shares are up by 2.72% at $99.73 on the last check Tuesday.

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