Trucking company PACCAR (NASDAQ: PCAR) will be reporting earnings this Tuesday morning. Here’s what to expect.
PACCAR beat analysts’ revenue expectations by 2.6% last quarter, reporting revenues of $6.96 billion, down 20.6% year on year. It was an exceptional quarter for the company, with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.
Is PACCAR a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting PACCAR’s revenue to decline 19.8% year on year to $6.61 billion, a further deceleration from the 5.2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.09 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. PACCAR has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 7.6% on average.
With PACCAR being the first among its peers to report earnings this season, we don’t have anywhere else to look to get a hint at how this quarter will unravel for heavy machinery stocks. However, investors in the segment have had steady hands going into earnings, with share prices flat over the last month. PACCAR’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $104.63 (compared to the current share price of $96.60).
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