Paccar’s stock surges toward a record after profit and revenue beats, upbeat outlook
Shares of Paccar Inc.
PCAR,
surged 5.2% toward a record high in premarket trading Tuesday, after the truck maker reported third-quarter profit and revenue that beat expectations, amid surprise growth in parts revenue, and provided an upbeat full-year outlook. Net income fell to $385.5 million, or $1.11 a share, from $607.9 million, or $1.75 a share, in the year-ago period. The FactSet consensus for earnings per share was 99 cents. Revenue fell 24.4% to $4.54 billion, but topped the FactSet consensus of $4.50 billion, as truck sales dropped 29.6% to $3.50 billion but was above expectations of $3.49 billion and parts revenue grew 1.5% to $1.02 billion beat expectations of decline to $975.8 million. The company raised its 2020 outlook for Class 8 truck industry retail sales to a range of 190,000 to 210,000 from 160,000 to 190,000. The stock, which closed Monday at a record $91.06, has run up 15.1% year to date, while the S&P 500
SPX,
has gained 6.1%.
