PACCAR Q1 Earnings Miss Expectations, Revenues Decline Y/Y

PACCAR Inc. PCAR recorded earnings of $1.46 per share for the first quarter of 2025, which missed the Zacks Consensus Estimate of $1.57 and declined from $2.27 reported in the year-ago period. Consolidated revenues (including trucks and financial services) came in at $7.44 billion, down from $8.74 billion in the corresponding quarter of 2024. Sales from Trucks, Parts and Others were $6.91 billion.PACCAR Inc. Price, Consensus and EPS Surprise PACCAR Inc. price-consensus-eps-surprise-chart | PACCAR Inc. QuoteKey TakeawaysRevenues from the Trucks segment totaled $5.23 billion in the first quarter, lower than the prior-year quarter’s $6.54 billion. The metric also missed our estimate of $5.43 billion. Global truck deliveries came in at 40,100 units, lower than our projection of 40,139 units and down from 48,110 units delivered in the corresponding quarter of 2024. The segment’s pre-tax income was $364.9 million, which fell short of our estimate of $551.1 million and plunged 58.6% year over year.Revenues from the Parts segment totaled $1.69 billion in the reported quarter, up from the year-earlier period’s $1.68 billion and matched our estimate. The segment’s pre-tax income came in at $426.5 million, down from $455.8 million reported in the year-ago period. The metric, however, topped our forecast of $339 million.Financial Services segment revenues came in at $528 million, higher than the year-ago quarter’s $509.3 million but lower than our estimate of $553 million. Pre-tax income increased to $121.1 million from $113.9 million reported in the year-ago period and also topped our projection of $118 million.Selling, general and administrative expenses in the first quarter of 2025 decreased to $143.3 million from $147.6 million in the prior-year period. Research & development (R&D) expenses were $115.4 million compared with the year-earlier quarter’s $105.5 million.PACCAR’s cash and marketable debt securities amounted to $8.1 billion as of March 31, 2025, compared with $9.65 billion as of Dec. 31, 2024.Capex for 2025 is envisioned in the band of $700-$800 million. R&D expenses are now estimated in the range of $450-$480 million compared with the previous estimate of $460-$500 million.(Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)PCAR’s Zacks Rank & Key PicksPACCAR carries a Zacks Rank #3 (Hold) at present.Some better-ranked stocks in the auto space are Hesai Group HSAI and Standard Motor Products, Inc. SMP. HSAI sports a Zacks Rank #1 (Strong Buy), while SMP carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for HSAI’s 2025 earnings indicates year-over-year growth of 336.36%, respectively. EPS estimates for 2026 have improved 12 cents in the past seven days.The Zacks Consensus Estimate for SMP’s 2025 sales and earnings implies year-over-year growth of 16.61% and 10.73%, respectively. EPS estimates for 2025 have improved 5 cents in the past 60 days. EPS estimates for 2026 have improved by a penny in the past 30 days.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PACCAR Inc. (PCAR): Free Stock Analysis Report Standard Motor Products, Inc. (SMP): Free Stock Analysis Report Hesai Group Sponsored ADR (HSAI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks