Insights into PACCAR's Upcoming Earnings

PACCAR PCAR will release its quarterly earnings report on Tuesday, 2024-10-22. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate PACCAR to report an earnings per share (EPS) of $1.82.

Anticipation surrounds PACCAR's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Past Earnings Performance

In the previous earnings release, the company missed EPS by $0.01, leading to a 1.85% increase in the share price the following trading session.

Here's a look at PACCAR's past performance and the resulting price change:

PACCAR Share Price Analysis

Shares of PACCAR were trading at $110.09 as of October 18. Over the last 52-week period, shares are up 29.94%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Analyst Observations about PACCAR

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding PACCAR.

A total of 8 analyst ratings have been received for PACCAR, with the consensus rating being Neutral. The average one-year price target stands at $108.25, suggesting a potential 1.67% downside.

Analyzing Analyst Ratings Among Peers

The analysis below examines the analyst ratings and average 1-year price targets of Cummins, Westinghouse Air Brake and Allison Transmission, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for Cummins, with an average 1-year price target of $329.88, suggesting a potential 199.65% upside.
• Analysts currently favor an Outperform trajectory for Westinghouse Air Brake, with an average 1-year price target of $220.0, suggesting a potential 99.84% upside.
• Allison Transmission received a Neutral consensus from analysts, with an average 1-year price target of $92.75, implying a potential 15.75% downside.

Snapshot: Peer Analysis

In the peer analysis summary, key metrics for Cummins, Westinghouse Air Brake and Allison Transmission are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

Key Takeaway:

PACCAR ranks at the bottom for Revenue Growth among its peers. It is in the middle for Gross Profit. PACCAR is at the top for Return on Equity.

All You Need to Know About PACCAR

Paccar is a leading manufacturer of medium- and heavy-duty trucks under the premium brands Kenworth and Peterbilt (primarily sold in the NAFTA region and Australia), and DAF trucks (sold in Europe and South America). The company's trucks are sold through more than 2,300 independent dealers globally. Paccar Financial Services provides retail and wholesale financing for customers and dealers, respectively. The company commands roughly 30% of the Class 8 market share in North America and 17% of the heavy-duty market share in Europe.

PACCAR: Delving into Financials

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

Decline in Revenue: Over the 3 months period, PACCAR faced challenges, resulting in a decline of approximately -1.23% in revenue growth as of 30 June, 2024. This signifies a reduction in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: PACCAR's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 12.8%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): PACCAR's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 6.49%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): PACCAR's ROA stands out, surpassing industry averages. With an impressive ROA of 2.75%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: PACCAR's debt-to-equity ratio is below the industry average at 0.81, reflecting a lower dependency on debt financing and a more conservative financial approach.

To track all earnings releases for PACCAR visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.