Heavy Transportation Equipment Stocks Q2 Teardown: PACCAR (NASDAQ:PCAR) Vs The Rest
Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at PACCAR (NASDAQ:PCAR) and its peers.
Heavy transportation equipment companies are investing in automated vehicles that increase efficiencies and connected machinery that collects actionable data. Some are also developing electric vehicles and mobility solutions to address customers’ concerns about carbon emissions, creating new sales opportunities. Additionally, they are increasingly offering automated equipment that increases efficiencies and connected machinery that collects actionable data. On the other hand, heavy transportation equipment companies are at the whim of economic cycles. Interest rates, for example, can greatly impact the construction and transport volumes that drive demand for these companies’ offerings.
The 14 heavy transportation equipment stocks we track reported a mixed Q2. As a group, revenues were in line with analysts’ consensus estimates.
Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. This year has been a different story as mixed inflation signals have led to market volatility, and while some heavy transportation equipment stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4.5% since the latest earnings results.
PACCAR (NASDAQ:PCAR)
Founded more than a century ago, PACCAR (NASDAQ:PCAR) designs and manufactures commercial trucks of various weights and sizes for the commercial trucking industry.
PACCAR reported revenues of $8.26 billion, down 2.1% year on year. This print was in line with analysts’ expectations, and overall, it was a strong quarter for the company with an impressive beat of analysts’ organic revenue estimates.
“Peterbilt and Kenworth’s premium quality trucks provide exceptional durability and reliability. The Kenworth and Peterbilt industry-leading vocational trucks are an important contributor to the success of infrastructure investments in North America,” said Darrin Siver, PACCAR executive vice president.
Unsurprisingly, the stock is down 12.1% since reporting and currently trades at $95.86.
Best Q2: Douglas Dynamics (NYSE:PLOW)
Once manufacturing snowplows designed for the iconic jeep vehicle precursor, Douglas Dynamics (NYSE:PLOW) offers snow and ice equipment for the roads and sidewalks.
Douglas Dynamics reported revenues of $199.9 million, down 3.6% year on year, outperforming analysts’ expectations by 9.4%. It was an incredible quarter for the company with an impressive beat of analysts’ earnings estimates.
The market seems content with the results as the stock is up 4% since reporting. It currently trades at $27.47.
Is now the time to buy Douglas Dynamics? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Microvast (NASDAQ:MVST)
With over 25 patents, Microvast (NASDAQ:MVST) designs, develops, and manufactures lithium-ion batteries for electric vehicles and batteries for renewable energy storage.
Microvast reported revenues of $83.68 million, up 11.6% year on year, falling short of analysts’ expectations by 4.4%. It was a weak quarter for the company with a miss of analysts’ earnings estimates.
As expected, the stock is down 22.4% since the results and currently trades at $0.31.
Read our full analysis of Microvast’s results here.
Blue Bird (NASDAQ:BLBD)
With around a century of experience, Blue Bird (NASDAQ:BLBD) is a manufacturer of school buses and complementary parts.
Blue Bird reported revenues of $333.4 million, up 13.3% year on year, surpassing analysts’ expectations by 2%. Overall, it was a solid quarter for the company with an impressive beat of analysts’ earnings estimates and optimistic EBITDA guidance for the full year.
Blue Bird had the weakest full-year guidance update among its peers. The stock is down 1.2% since reporting and currently trades at $47.96.
Read our full, actionable report on Blue Bird here, it’s free.
Allison Transmission (NYSE:ALSN)
Helping build race cars at one point, Allison Transmission (NYSE:ALSN) offers transmissions to original equipment manufacturers and fleet operators.
Allison Transmission reported revenues of $816 million, up 4.2% year on year, surpassing analysts’ expectations by 2.1%. Revenue aside, it was a mixed quarter for the company with a decent beat of analysts’ earnings estimates but a miss of analysts’ North America On-Highway revenue estimates.
The stock is up 2.3% since reporting and currently trades at $86.35.
Read our full, actionable report on Allison Transmission here, it’s free.
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