Why Is Commercial Truck Manufacturer PACCAR Stock Diving Today?
Portfolio Pulse from Nabaparna Bhattacharya
PACCAR Inc. (NASDAQ:PCAR) shares are trading lower after the company reported worse-than-expected second-quarter financial results. Quarterly sales and earnings per share missed street expectations. The company is investing heavily in new manufacturing capacities and has formed a joint venture for battery manufacturing.
July 23, 2024 | 3:38 pm
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PACCAR Inc. reported Q2 sales of $8.262 billion and EPS of $2.13, both missing street expectations. The company is investing over $200 million in new manufacturing capacities and has formed a joint venture for battery manufacturing.
The miss on both sales and earnings per share is a significant negative factor for investors, leading to a sharp decline in the stock price. While the company's investments in new manufacturing capacities and a battery JV are positive long-term, they do not offset the immediate negative impact of the earnings miss.
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