PACCAR, a renowned global manufacturer of heavy-duty trucks, has exceeded market expectations in its latest financial announcement. The company reported a robust earnings of $2.33 per share, surpassing the analyst consensus of $2.18 per share by $0.15. This performance was accompanied by a notable 24.4% year-over-year increase in revenues, totaling $8.44 billion and exceeding the forecasted $8.31 billion.
The company further impressed with its global truck deliveries, reaching 51,900 units in the second quarter. Reflecting its financial health, PACCAR has enhanced shareholder value by approving an 8% hike in its regular quarterly cash dividend, now at $0.27 per share, up from $0.25. The company's spokesperson highlighted the pivotal role of fleet updates in boosting demand for their fuel-efficient and reliable Peterbilt and Kenworth trucks, underscoring full bookings in their factory production schedules for the year.
PACCAR's fourth-quarter performance in 2022 also set records, with consolidated revenues peaking at $9.08 billion and net income reaching $1.42 billion, or $2.70 per fully diluted share. Historically, PACCAR has displayed a remarkable track record in surpassing earnings and revenue estimates, as noted by Seeking Alpha, beating EPS estimates 88% of the time and consistently outperforming revenue predictions.
CEO Preston Feight proudly stated, Paccar is manufacturing the most impressive new truck range in its history. The company's commitment to innovation is evident in their investment in next-generation trucks, encompassing a range of powertrains from clean diesel to hydrogen combustion and fuel cell technologies.
The company's parts business also contributed significantly to its success, with Paccar Parts reporting revenues of $1.61 billion and a pretax profit of $432.4 million. Although financial services pretax income was slightly lower than the previous year, at $113 million, the fourth-quarter revenues of $484.8 million still surpassed Q4 2022's figures.
2022 was a record-setting year for PACCAR, marked by consolidated revenues of $35.13 billion and a 13.1% after-tax return, netting an income of $4.60 billion. Parts revenue reached $6.41 billion with a pretax income of $1.70 billion, and the financial services sector saw assets grow to $20.96 billion. PACCAR also rewarded shareholders with record cash dividends of $4.24 per share, including a special one-time dividend, culminating in a total shareholder return of 55%.
In 2023, despite a one-time charge, PACCAR's earnings exceeded the previous year's figures. The company posted an income of $4.60 billion, or $8.76 per share, inclusive of a $446.4 million after-tax, non-recurring charge related to a European price-fixing case settlement from 2016. Adjusting for this charge, PACCAR's net income was an impressive $5.05 billion, or $9.61 per share.
PACCAR's commitment to future growth and innovation was evidenced by its $1.11 billion investment in capital projects and research and development. This includes a significant venture into battery production, through a joint project with Cummins Inc. and Daimler Truck, and collaboration with China-based EV Energy. The new plant in northern Mississippi, set to produce 21 gigawatt hours of batteries and create 2,000 manufacturing jobs, represents a strategic move into sustainable energy solutions for the future.