Trucking company PACCAR (NASDAQ: PCAR) will be reporting results this Tuesday morning. Here’s what to expect.
PACCAR missed analysts’ revenue expectations last quarter, reporting revenues of $6.78 billion, down 8.9% year on year. It was a slower quarter for the company, with EPS in line with analysts’ 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 be flat year on year, improving from the 14.4% 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 rarely misses Wall Street’s revenue estimates.
Looking at PACCAR’s peers in the heavy machinery segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Wabtec delivered year-on-year revenue growth of 17.5%, beating analysts’ expectations by 3.3%, and Greenbrier reported a revenue decline of 31.6%, falling short of estimates by 5.9%. Wabtec traded up 13.1% following the results while Greenbrier’s stock price was unchanged.
Read our full analysis of Wabtec’s results here and Greenbrier’s results here.
Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). While some of the heavy machinery stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.5% on average over the last month. PACCAR is up 10.6% during the same time and is heading into earnings with an average analyst price target of $128.44 (compared to the current share price of $132.33).
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