Truck maker Paccar Inc. reported record fourth-quarter revenue and net profits, racing past analyst estimates and posting its 85th consecutive year of reporting net profit.
The Bellevue, Washington-based parent of Kenworth, Peterbilt and DAF Trucks reported record consolidated revenues of $9.08 billion and record net income of $1.42 billion, or $2.70 per fully diluted share, in the October-December period.
Paccar keeps up beatdown of analysts
A consensus of analysts by investor site Seeking Alpha predicted $2.21 per share on revenues of $8.3 billion. Over the last two years, Paccar has beaten EPS estimates 88% of the time and has beaten revenue estimates 100% of the time.
“Paccar is manufacturing the most impressive new truck range in its history,” CEO Preston Feight said in a news release. “These trucks deliver premium quality, excellent fuel efficiency and low operating costs. Paccar is investing in the next generation of trucks that feature clean diesel, battery-electric, hydrogen combustion or fuel cell powertrains.”
Strong sales and profits in its parts business again helped results. Paccar Parts generated $1.61 billion in revenue and pretax profit of $432.4 million. Financial services pretax income of $113 million trailed the year-ago pretax profit of $151.3 million. Fourth quarter revenues of $484.8 million eclipsed the $394.8 million reported in Q4 2022.
Host of records in 2023
For the full year, Paccar reported a host of records:
• Consolidated revenues of $35.13 billion with a 13.1% after-tax return.
• Net income of $4.60 billion.
• Parts revenue of $6.41 billion with pretax income of $1.70 billion.
• Financial Services assets of $20.96 billion, including a portfolio of 233,000 trucks and trailers
• Record cash dividends of $4.24 per share, including a one-time special $3.20 dividend paid Jan. 4 for total shareholder return of 55%.
2023 results overwhelm year ago despite one-time charge
The company earned $4.60 billion, or $8.76, in 2023, including a $446.4 million after-tax, non-recurring charge related to settling a 2016 price-fixing case in Europe. That compared to $3.01 billion, or $5.75, in 2022. Excluding the charge, Paccar’s adjusted net income was $5.05 billion, or $9.61, in 2023.
Paccar invested $1.11 billion in capital projects and research and development during the year. That included participating in a $2 billion to $3 billion battery-making joint venture with Cummins Inc. and rival Daimler Truck. Working with China-based EV Energy, a new plant in northern Mississippi will produce 21 gigawatt hours of batteries, creating 2,000 manufacturing jobs.
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Click for more FreightWaves articles by Alan Adler.
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