Why Truck Manufacturer PACCAR Shares Are Declining Today
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 30 2024
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Source: Benzinga
PACCAR Inc First Quarter FY24 Results:
- Reported net sales and revenues of $8.235 billion for Truck, Parts, and other segments.
- Total revenues amounted to $8.74 billion, beating the consensus of $8.24 billion.
- PACCAR Financial Services revenues increased to $509.3 million.
- The company invested in capital projects and research and development expenses.
- Operating cash flow for the quarter was $1.47 billion.
Investments and Outlook:
- PACCAR's investments in new truck models, manufacturing, and technology are contributing to strong operating margins.
- The company plans capital expenditures of $700 million-$750 million and R&D expenses of $460 million-$500 million in 2024.
- Forecasts European truck registrations, South American truck market, and U.S. and Canada Class 8 truck industry retail sales for 2024.
Market Insights:
- North American truck demand is benefiting from increased infrastructure spending.
- Kenworth and Peterbilt trucks provide quality and durability for construction applications.
- Investors can access PCAR shares through ETFs like FTXR and MDCP.
Leadership Statements:
- CEO Preston Feight highlights investments in new technologies and aftermarket solutions.
- EVP Mike Dozier emphasizes the quality and durability of Kenworth and Peterbilt trucks in construction applications.
Stock Performance:
- PCAR shares are down 7.25% at $105.40 following the earnings report.
Analyst Views on FTXR
Wall Street analysts forecast FTXR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for FTXR is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
