Why Is Paccar (PCAR) Down 2.9% Since Last Earnings Report?

It has been about a month since the last earnings report for Paccar (PCAR). Shares have lost about 2.9% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Paccar due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for PACCAR Inc. before we dive into how investors and analysts have reacted as of late.PACCAR Q2 Earnings Beat EstimatesPACCAR recorded earnings of $1.37 per share for the second quarter of 2025, which topped the Zacks Consensus Estimate of $1.28 but declined from $2.13 reported in the year-ago period. Consolidated revenues (including trucks and financial services) came in at $7.51 billion, down from $8.77 billion in the corresponding quarter of 2024. Sales from Trucks, Parts and Others were $6.96 billion.Key TakeawaysRevenues from the Trucks segment totaled $5.24 billion in the second quarter, lower than the prior-year quarter’s $6.58 billion. The metric, however, surpassed our estimate of $5.03 billion. Global truck deliveries came in at 39,300 units, higher than our projection of 38,203 units but down from 48,400 units delivered in the corresponding quarter of 2024. The segment’s pre-tax income was $308.8 million, which fell short of our estimate of $412 million and plunged 63.2% year over year.Revenues from the Parts segment totaled $1.72 billion in the reported quarter, which increased from the year-earlier period’s $1.66 billion and topped our estimate of $1.7 billion. The segment’s pre-tax income came in at $416.5 million, up from $413.8 million reported in the year-ago period. The metric also topped our forecast of $335.3 million.Financial Services segment revenues came in at $547.7 million, higher than the year-ago quarter’s $509.8 million and our estimate of $536.5 million. Pre-tax income increased to $123.2 million from $111.2 million reported in the year-ago period and also topped our projection of $112.3 million.Selling, general and administrative expenses in the second quarter of 2025 decreased to $139.2 million from $142.7 million in the prior-year period. Research & development expenses were $112.9 million compared with the year-earlier quarter’s $117.1 million.PACCAR’s cash and marketable debt securities amounted to $8.28 billion as of June 30, 2025, compared with $9.65 billion as of Dec. 31, 2024.Capex for 2025 is now envisioned in the band of $750-$800 million compared with the previous estimate of $700-$800 million. R&D expenses are estimated in the range of $450-$480 million.How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended downward during the past month.The consensus estimate has shifted -14.57% due to these changes.VGM ScoresCurrently, Paccar has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for value investors.Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Paccar has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.Free Report: 3 Software Stocks Poised to SkyrocketSoftware stocks are poised to catapult higher in the coming months (and years) thanks to several factors, especially the explosive growth of AI. Zacks' urgent report reveals 3 top software stocks to own right now.Access the report free today >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PACCAR Inc. (PCAR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks