PACCAR (PCAR) shares rose higher by 2.1% in
pre-market after the company reported better than expected results.
The designer and manufacturer of light-, medium-, and heavy-duty trucks, which are sold under brands like Kenworth, Peterbilt, and DAF, reported above-consensus second quarter earnings of $1.59/share on a 24.3% year/year spike in revenue to $5.47 bln, which was also better than expected.
In addition to beating estimates, PACCAR announced a new authorization to repurchase $300.00 mln worth of its shares and boosted its quarterly dividend by 12.0% to $0.28/share.
Truck sales increased 25.7% year/year to $4.47 bln. The company noted that Kenworth, Peterbilt, and DAF delivered a record of 46,400 trucks, representing year/year growth of 18%. Delivery growth was reported in North America, Europe, Australia, and Brazil. Deliveries in the U.S. and Canada grew 22.2% to 25,900 units while deliveries in Europe increased 14.5% to 15,800. Deliveries in other regions grew 6.8% to 4,700.
Parts sales grew 17.6% to $968.0 mln. Pre-tax profit in the Parts segment jumped 28.6% year/year to $194.5 mln. The company continued adding global parts distribution capacity, including a 160,000 square-foot distribution center in Toronto, which is expected to open in the fourth quarter.
Research & Development expense increased 16.0% to $76.7 mln.
- OUR VIEW
- LEARNING CENTER