Paccar Reports Decline in Revenue and Net Income for Q4 2024

Paccar's stock fell by over 2% following disappointing results. Revenue dropped to $7.9 billion, with net income at $872 million, below analyst expectations. Investors worry about the truck maker's future.

Date: 29-01-2025

AI Rating: 4

Paccar's Financial Performance has presented a mixed picture for investors. The truck maker reported a significant decline in both revenue and net income for the fourth quarter of 2024. For the quarter, revenue was just over $7.9 billion, a decrease from nearly $9.1 billion in the same period of the previous year. Additionally, net income stood at $872 million, translating to $1.66 per share, down from $1.4 billion a year ago.

Despite beating the average analyst revenue estimate of $7.6 billion, Paccar did not meet the profitability expectations. Analysts had predicted per-share net income of $1.70. The decline in revenue is attributed to a major drop in truck sales, which fell by 14% to under $7.4 billion. While the financial services segment reported a small growth of 12%, it was insufficient to balance the overall revenue slump.

Sales Projections for unit sales have been provided, estimating between 250,000 to 280,000 trucks to be sold in North America for 2025, down slightly from 268,000. European sales are projected to significantly drop, forecast at 270,000 to 300,000, whereas South American sales are expected to hold relatively steady around 115,000 to 125,000.

While the lack of guidance for future financial performance is a concern, the company remains optimistic about its business. The uncertainty surrounding the declines in sales raises questions regarding its operational resilience. Investors will be looking ahead to see if management can articulate a strategy that ensure better performance in the upcoming quarters.

Stocks: PCAR