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Why Is Paccar (PCAR) Down 3.3% Since Last Earnings Report?

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A month has gone by since the last earnings report for Paccar (PCAR - Free Report) . Shares have lost about 3.3% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Paccar due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

PACCAR Q3 Earnings In Line With Estimates

PACCAR recorded earnings of $1.12 per share for the third quarter of 2025, matching the Zacks Consensus Estimate but declining from $1.85 reported in the year-ago period. 

Consolidated revenues (including trucks and financial services) came in at $6.67 billion, down from $8.24 billion in the corresponding quarter of 2024. Sales from Trucks, Parts and Others were $6.11 billion.

Key Takeaways

Revenues from the Trucks segment totaled $4.38 billion in the third quarter, lower than the prior-year quarter’s $6.03 billion. The metric, however, surpassed our estimate of $4.28 billion. Global truck deliveries came in at 31,900 units, lower than our projection of 32,153 units and down from 44,900 units delivered in the corresponding quarter of 2024. The segment’s pre-tax income was $102.5 million, which fell short of our estimate of $326.2 million and plunged 83.8% 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 matched our estimate. The segment’s pre-tax income came in at $410 million, up from $406.7 million reported in the year-ago period. The metric also topped our forecast of $325.5 million.

Financial Services segment revenues came in at $565.3 million, higher than the year-ago quarter’s $536.1 million and topped our estimate of $560.8 million. Pre-tax income increased to $126.2 million from $106.5 million reported in the year-ago period and also topped our projection of $118.3 million.

Selling, general and administrative expenses in the third quarter of 2025 decreased to $140.3 million from $144.3 million in the prior-year period. Research & development (R&D) expenses were $111 million compared with the year-earlier quarter’s $115 million.

PACCAR’s cash and marketable debt securities amounted to $9.07 billion as of Sept. 30, 2025, compared with $9.65 billion as of Dec. 31, 2024.

Capex for 2025 is now envisioned in the band of $750-$775 million compared with the previous estimate of $750-$800 million. R&D expenses are estimated in the range of $450-$465 million, down from the previous estimate of $450-$480 million.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates revision.

The consensus estimate has shifted -13.77% due to these changes.

VGM Scores

Currently, Paccar has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a score of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates 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 #5 (Strong Sell). We expect a below average return from the stock in the next few months.


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