PACCAR To Gain From Rising Truck Demand, Competition A Woe
Zacks Investment Research | Jun 17, 2018 09:08PM ET
On Jun 15, we issued an updated research report on PACCAR Inc. (NASDAQ:PCAR) .
Driven by a robust economy and strong freight demand, the company witnessed the doubling of Class 8 truck orders in the first quarter of 2018 compared with the prior-year quarter. This has encouraged PACCAR to raise its 2018 Class 8 truck industry retail sales estimates for the United States and Canada to 265,000-285,000 vehicles compared with its prior anticipation of 235,000-265,000 units. Moreover, the newly estimated range is much higher than 218,000 units of retail sales generated in 2017.
In first-quarter 2018, this leading truck manufacturer saw a year-over-year increase in revenues and adjusted earnings. Moreover, both earnings and sales surpassed the respective Zacks Consensus Estimate. Furthermore, a strong balance sheet and outstanding long-term earnings are enabling PACCAR to invest in innovative products and new technologies. In 2018, the company aims to invest $300-$320 million under research and development expenses, to develop new truck models and powertrains, enabled with electric, hybrid and hydrogen fuel-cell technologies.
PACCAR Inc. Price and Consensus
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