BELLEVUE, Wash. - PACCAR Inc (NASDAQ:PCAR) has reported a robust first quarter in 2024, with earnings surpassing analyst expectations. PCAR stock was down 2.3% in premarket trading Tuesday.
The company, known for its high-quality DAF, Peterbilt, and Kenworth trucks, as well as aftermarket parts and financial services, announced an adjusted earnings per share (EPS) of $2.27, which is $0.07 higher than the analyst estimate of $2.20. Additionally, PACCAR's revenue for the quarter was $8.74 billion, significantly exceeding the consensus estimate of $8.28 billion.
Compared to the first quarter of the previous year, PACCAR's revenue showed a healthy increase from $8.47 billion, marking a YoY growth. The company's net income also saw a substantial rise to $1.20 billion in the first quarter of 2024, up from an adjusted net income of $1.18 billion ($2.25 per diluted share) in the first quarter of 2023, after excluding a one-time charge related to civil litigation in Europe.
PACCAR CEO Preston Feight attributed the strong performance to the continued demand for the company's premium trucks and services. "PACCAR's results reflect ongoing demand for premium quality DAF, Peterbilt and Kenworth trucks, aftermarket parts and financial services," said Feight. He also praised the company's employees and dealers for delivering exceptional transportation solutions to customers.
The company's PACCAR Parts division achieved record revenues and profits, with pre-tax income reaching $455.8 million on revenues of $1.68 billion. PACCAR Financial Services also reported good quarterly profits with pretax income of $113.9 million and record revenues of $509.3 million. These results underscore the company's strategic investments in technology-driven transportation solutions and its commitment to delivering greater uptime and profitability for customers.
Looking ahead, PACCAR plans to continue investing in new truck models, advanced manufacturing, and technology-enabled aftermarket solutions, which are expected to contribute to the company's strong operating margins. The company's capital expenditures are projected to be in the range of $700-$750 million, with research and development expenses estimated to be between $460-$500 million in 2024.
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