Trucking company PACCAR (NASDAQ: PCAR) will be reporting earnings this Tuesday before market open. Here’s what to look for.
PACCAR met analysts’ revenue expectations last quarter, reporting revenues of $7.55 billion, flat year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS estimates.
Is PACCAR a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting PACCAR’s revenue to grow 23.4% year on year, a reversal from the 19% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. PACCAR has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at PACCAR’s peers in the heavy machinery segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Wabtec delivered year-on-year revenue growth of 8.1%, missing analysts’ expectations by 2.6%, and Lindsay reported revenues up 5.2%, topping estimates by 7.3%. Wabtec traded down 2.4% following the results while Lindsay’s stock price was unchanged.
Read our full analysis of Wabtec’s results here and Lindsay’s results here.
In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the heavy machinery stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.9% on average over the last month. PACCAR is down 2.1% during the same time and is heading into earnings with an average analyst price target of $133.38 (compared to the current share price of $109.33).
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