By (Reuters) – PACCAR (NASDAQ:PCAR) reported a gross margin that fell short of its own expectations on higher costs, sending the truckmaker’s shares down 5.7% in morning trading on Tuesday.
The trucking industry has taken a hit from depressed freight demand after the pandemic and has had to contend with rising labor costs, like many other U.S. industries.
PACCAR reported a gross margin of 16.6%, below the expectation of 17% it had forecast in July.
While revenue from the trucks and parts segment fell 6.4% compared to last year, the cost of goods fell only 3%.
“We would anticipate PCAR shares to come under pressure today on weaker-than-expected 3Q gross margins,” analysts from Citi said.
The Bellevue, Washington-based company reported a profit of $1.85 per share for the quarter ended Sept. 30, lower than $2.34 per share a year ago.
Revenue for the reported quarter was $8.24 billion, down 5.3% from $8.70 billion last year.