Trucking company PACCAR (NASDAQ:PCAR) will be reporting earnings this Tuesday before the bell. Here’s what you need to know.
PACCAR beat analysts’ revenue expectations by 0.6% last quarter, reporting revenues of $6.67 billion, down 19% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ EBITDA estimates but a significant miss 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 16.1% year on year to $6.64 billion, a further deceleration from the 12.9% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.06 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 7.7% on average.
Looking at PACCAR’s peers in the heavy machinery segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Greenbrier’s revenues decreased 19.4% year on year, beating analysts’ expectations by 7.7%, and Lindsay reported a revenue decline of 6.3%, falling short of estimates by 7%. Greenbrier traded down 10.3% following the results while Lindsay was up 5.6%.
Read our full analysis of Greenbrier’s results here and Lindsay’s results here.
There has been positive sentiment among investors in the heavy machinery segment, with share prices up 9.2% on average over the last month. PACCAR is up 8.4% during the same time and is heading into earnings with an average analyst price target of $117.32 (compared to the current share price of $121.84).
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.