– PACCAR Inc beat market expectations for fourth-quarter earnings on Tuesday, aided by strong demand for its trucks from customers looking to replace ageing fleets.
Shares of the truckmaker were up about 4% at $106.5 in premarket trading.
Rising e-commerce deliveries and a focus on bolstering logistics networks have driven demand for long-haul trucks, bolstering sales for companies such as PACCAR.
Also, a shortage of critical parts pressured production at truck makers, forcing customers to delay refreshing their fleets.
“Good freight markets and an increased fleet age are driving strong demand…,” PACCAR Vice President Darrin Siver said.
Last week, logistics giant JB Hunt Transport Services also gave an upbeat forecast for the freight market this year.
PACCAR said on Tuesday that U.S. and Canada Class 8 truck industry retail sales are estimated to be in the range of 270,000 and 310,000 trucks for 2023. Last year, it sold 283,500 units.
Class 8 trucks refer to those that have a gross vehicle weight of more than 33,000 pounds and are used to move heavy freight.
The U.S. truckmaker reported a profit of $2.64 per share for the quarter ended December, compared with analysts’ average estimate of $2.21 per share, according to Refinitiv data.
Its revenue increased nearly 22% to $8.13 billion, topping analysts’ average expectations of $7.11 billion.