Truist Securities maintains Hold rating on PACCAR stock amid profit miss

Published 21/10/2025, 15:20
Truist Securities maintains Hold rating on PACCAR stock amid profit miss

Investing.com - Truist Securities has reiterated its Hold rating and $97.00 price target on PACCAR (NASDAQ:PCAR), a prominent machinery industry player with a $52.18 billion market cap, following the company’s third-quarter earnings report that fell short of analyst expectations. According to InvestingPro data, five analysts have recently revised their earnings estimates downward for the upcoming period.

PACCAR reported earnings per share of $1.12, below the consensus estimate of $1.15 and representing a 39% year-over-year decline. Total Truck, Parts & Other sales decreased 20.7% to $6.107 billion, slightly below consensus expectations of $6.163 billion.

The company’s truck segment showed significant weakness with sales of $4.381 billion, down 27% year-over-year, while truck pretax margin fell to 2.3% compared to 5.9% in the previous quarter and 10.5% in the same period last year. Total new truck deliveries reached 31,900 units, a 29% decrease from the previous year and slightly below management’s guidance of 32,000-33,000 units.

PACCAR’s parts business performed relatively better with sales of $1.725 billion, representing 4% growth, though still slightly below analyst expectations of $1.740 billion. The parts segment achieved a pretax margin of 23.8%, down 110 basis points year-over-year.

By region, PACCAR’s sales in the U.S. and Canada declined 21% year-over-year, while Europe sales increased 4%, and South America and other markets saw a 35% decrease. The company reported strong cash flow from operations at $1.53 billion compared to $1.286 billion in the same quarter last year. Despite current challenges, PACCAR maintains its 55-year streak of consecutive dividend payments. For deeper insights into PACCAR’s financial health and future prospects, including exclusive analyst forecasts and comprehensive valuation metrics, check out the detailed Pro Research Report available on InvestingPro.

In other recent news, PACCAR Inc. reported its third-quarter financial results, which included earnings that did not meet analyst expectations. The company announced earnings of $1.12 per share, falling short of the projected $1.16 per share. Despite this earnings miss, PACCAR’s revenue for the quarter was $6.67 billion, exceeding the consensus forecast of $6.18 billion. These developments have caught the attention of investors and analysts alike. The financial results highlight a mixed performance for the truck manufacturer, with revenue growth but a shortfall in earnings. As these updates unfold, analysts from various firms continue to assess the implications for PACCAR’s future performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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