Analyst Note| Dawit Woldemariam |
Paccar posted strong first-quarter results that were above our expectations, leading us to raise our fair value estimate to $97 from $94, reflecting increased demand for aftermarket parts. Strong freight activity pushed sales in the parts business to $1.16 billion, up 16% year over year. E-commerce sales shined as well, up over 30% year over year, showing its value for customers by providing consistent parts availability. Pretax profit came in at $251.3 million, up 17% year over year.