PACCAR's Earnings Outlook

PACCAR PCAR is gearing up to announce its quarterly earnings on Tuesday, 2024-10-22. Here's a quick overview of what investors should know before the release.

Analysts are estimating that PACCAR will report an earnings per share (EPS) of $1.82.

The announcement from PACCAR is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Historical Earnings Performance

During the last quarter, the company reported an EPS missed by $0.01, leading to a 1.85% increase in the share price on the subsequent day.

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 are likely bullish 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.

The consensus rating for PACCAR is Neutral, based on 8 analyst ratings. With an average one-year price target of $108.25, there's a potential 1.67% downside.

Peer Ratings Comparison

This comparison focuses on the analyst ratings and average 1-year price targets of Cummins, Westinghouse Air Brake and Allison Transmission, three major players in the industry, shedding light on their relative performance expectations and market positioning.

• The consensus outlook from analysts is an Neutral trajectory for Cummins, with an average 1-year price target of $329.88, indicating 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.
• Analysts currently favor an Neutral trajectory for Allison Transmission, with an average 1-year price target of $92.75, suggesting a potential 15.75% downside.

Peers Comparative Analysis Summary

The peer analysis summary outlines pivotal metrics for Cummins, Westinghouse Air Brake and Allison Transmission, demonstrating their respective standings within the industry and offering valuable 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 bottom 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.

Unraveling the Financial Story of PACCAR

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. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in 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 ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 6.49% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): PACCAR's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 2.75%, the company showcases efficient use of assets and strong financial health.

Debt Management: With a below-average debt-to-equity ratio of 0.81, PACCAR adopts a prudent financial strategy, indicating a balanced approach to debt management.

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.