PACCAR Inc's stock plummeted 5.31% during intraday trading on Tuesday, following the release of its first-quarter financial results that showed a decline in revenue and a sales miss against analyst expectations.

The company reported quarterly revenue of $6.78 billion, down from $7.44 billion a year earlier. While net income rose to $1.15 per diluted share from $0.96, the revenue decline and a sales figure of $6.234 billion missing the consensus estimate of $6.454 billion appeared to weigh on investor sentiment.

The drop in revenue was attributed to tepid demand for new trucks, as the industry struggles with over-capacity. PACCAR reported 17,800 U.S. and Canada truck deliveries for the quarter, down from 22,200 a year earlier, with revenue from truck sales falling 13.4% to $4.53 billion.