Paccar stock falls after surprise profit decline, but revenue rose above forecasts
Shares of Paccar Inc.
PCAR,
shed 0.8% in premarket trading Tuesday, after the truck maker reported a surprise decline in third-quarter profit but revenue that rose above forecasts, as the semiconductor shortage reduced deliveries by more than 17%. Net income fell to $377.7 million, or $1.08 a share, from $385.5 million, or $1.11 a share, in the year-ago period. The FactSet consensus for earnings per share was $1.20. Sales and revenue grew 4.4% to $4.74 billion, above the FactSet consensus of $4.73 billion, while total revenue grew 4.3% to $5.15 billion to top expectations of $5.11 billion. Cost of sales and revenue rose 5.6% to $4.18 billion. The company’s Kenworth, Peterbilt and DAF brands delivered 32,800 trucks during the quarter, while the undersupply of chips reduced truck deliveries by about 7,000 vehicles. “PACCAR expects global truck production to improve as supply chain deliveries are resolved,” said Chief Executive Preston Feight. The company expects 2021 capital investments of $525 million to $550 million and research and development expenses to be $320 million to $330 million. The stock has gained 1.1% year to date through Monday, while the S&P 500
SPX,
has advanced 21.6%.
