PACCAR overtakes analyst estimates on trucks, aftermarket parts demand

(Reuters) – Truckmaker PACCAR Inc on Tuesday beat first-quarter profit and revenue estimates as demand for its truck models and aftermarket parts remained strong, boosted by customers looking to replace ageing fleets.

Shares of the Bellevue, Washington-based company were up 1.65% at about $75 in premarket trading.

The company benefited from a surge in ecommerce sales during the COVID-19 pandemic as government-enforced restrictions meant more people were shopping online, spurring demand in logistics sector for home deliveries.

“Good freight markets and strong customer demand are driving the resilient truck market in North America,” said Darrin Siver, PACCAR executive vice president.

PACCAR, which designs and manufactures for trucks under the Kenworth, Peterbilt and DAF nameplates, reported a profit of $2.25 per share for the quarter ended March 31, compared with analysts’ average estimate of $1.81 per share, according to Refinitiv data.

Its revenue rose nearly 32% to $8.05 billion, topping analysts’ average expectations of about $7.71 billion.

(Reporting by Priyamvada C and Nathan Gomes in Bengaluru; Editing by Shweta Agarwal)