Our Quick Takes on Welltower, Paccar Earnings Beats
As we await calls for these two Portfolio names (and Boeing), we’ll give our views on how earnings so far confirm our positions.
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We gave our initial reaction to Boeing’s (BA) second-quarter earnings results and said we’d have more to say once we’ve digested this morning’s earnings conference call. For now, however, we’re eyeing two other earnings reports and calls this a.m.: Portfolio stocks Welltower (WELL) and Paccar (PCAR). Like Boeing, Welltower will hold its call this morning; Paccar’s kicks off at noon ET.
Here are our quick thoughts on these companies’ earnings reports ahead of their calls. We’ll have more after the calls, so stay tuned.
Welltower
Senior housing-focused real estate investment trust Welltower delivered normalized funds from operations (FFO) per share of $1.60, beating the consensus estimate of $1.55, and up from from $1.47 in Q1 2026 and $1.28 in last year’s second quarter. Total revenue for the quarter grew to $3.54 billion, topping the $3.39 billion consensus and up 39% year over year. This increase was spurred by the substantial jump — more than 50% — in resident fees and service revenue. Baked into that growth rate are continued gains in both average occupancy growth and revenue per occupied room, which in our view confirms the decision by Welltower to focus on senior housing and benefit from the aging of the population tailwind.
Welltower also announced a 15% dividend increase to $0.85 per share, which along with the operating metrics discussed above will likely trigger at least a price target revision for the shares.
Paccar
Paccar reported second-quarter EPS of $1.43 on revenue of $7.55 billion, besting the market consensus figures of $1.36 and $7 billion. During the quarter, the company delivered 38,700 trucks, up from 33,100 in Q1 2026, confirming the rebound in market demand that first led us to add PCAR shares to the Portfolio. What we liked even more, however, was the confirmation of incremental margin gains as Paccar’s truck production climbs. Operating margin for the truck and parts business climbed to 10.8% in Q2 2026 from essentially 9% in Q1 2026 with that almost 17% sequential jump in truck deliveries.
As truck production climbs further in the coming quarters to match the demand inferred from the ramp we’ve seen in industry orders levels, we see stronger margins in the second half of 2026 compared to the first half of 2026. Given that expected ramp, we’ll be listening for comments about pricing actions at Paccar and how that could drive even stronger than expected margin expectations and bottom line results in the coming quarters. If that is what we see, we will likely need to reflect that in our PCAR price target.
Remember also the pending Environmental Protection Agency mandate that comes into effect in the first quarter of 2027 that is helping stoke 2026 truck demand.
At the time of publication, TheStreet Pro Portfolio was long BA, PCAR and WELL.
