PACCAR stock pops on record sales, profits

Apr. 26, 2022 8:52 AM ETPACCAR Inc (PCAR)By: Kevin P. Curran, SA News Editor3 Comments

Freightliner Semi Tractor Trailer Trucks Lined up for Sale. Freightliner is owned by Daimler Trucks.

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PACCAR Inc. (NASDAQ:PCAR) shares are popping in pre-market action after the company cruised to an earnings beat by taking advantage of issues adversely impacting other industries

The Bellevue, Washington-based truck manufacturer notched revenue of $6.47 billion in the quarter, which marked a rise of over 10% year over year and bested estimates by $610 million. Meanwhile, quarterly EPS came in at $1.72 against expectations set at $1.56.

“PACCAR Parts achieved record quarterly sales and profits as its outstanding operational performance enhanced uptime for customers,” CEO Preston Feight said. “PACCAR Financial Services delivered record profitability due to excellent portfolio quality, strong new business volume and high used truck prices.”

The earnings release explains that the company was able to benefit from the shortage of semiconductors, which has increased demand for used trucks and promoted price increases. Additionally, the company noted strength in European demand and a surge in profits from its parts subsidiary.

Laura Bloch, general manager of the latter segment, noted that quarterly revenues of $1.39 billion from the arm of the company she helms shattered records. She highlighted strides in ie-commerce technology and a customer-centric approach as critical to carrying the positive results.

Shares rose about 3% in pre-market hours.

Read more on the results from key European competitor AB Volvo (OTCPK:VOLAF).

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