PACCAR (NASDAQ: PCAR) reported a gross margin that fell short of its own expectations on higher costs, causing the truckmaker’s shares to drop by 4.40% on Tuesday.
The trucking industry has taken a hit from depressed freight demand after the pandemic and has had to contend with rising labor costs, like many other U.S. industries.
PACCAR reported a gross margin of 16.6%, below the expectation of 17% it had forecast in July.
While revenue from the trucks and parts segment fell 6.4% compared to last year, the cost of goods fell only 3%.
“We would anticipate PCAR shares to come under pressure today on weaker-than-expected 3Q gross margins,” analysts from Citi said.
PACCAR (NASDAQ: PCAR) reported a profit of $1.85 per share for the quarter ended September 30, lower than $2.34 per share a year ago.
Revenue for the reported quarter was $8.24 billion, down 5.3% from $8.70 billion last year.
(Source: Reuters)
Zabih Ullah is a seasoned finance writer with more than ten years of experience. He is highly skilled at analyzing market trends, decoding economic data, and providing insightful commentary on various financial topics. Driven by his curiosity, Zabih stays updated with the latest developments in the finance industry, ensuring that his readers receive timely and relevant news and analysis.