## PACCAR (PCAR) Earnings Preview: What to Expect on October 22nd
Investors are gearing up for PACCAR’s (PCAR) quarterly earnings report, scheduled for release on Tuesday, October 22nd. This leading manufacturer of medium- and heavy-duty trucks under the premium brands Kenworth and Peterbilt (primarily sold in North America and Australia), and DAF trucks (sold in Europe and South America), is expected to deliver strong results. Analysts anticipate earnings per share (EPS) of $1.82, but the real focus will be on guidance for the next quarter.
While exceeding estimates is crucial, market reactions are often driven by guidance. Past earnings releases have demonstrated this pattern, with the company’s share price experiencing significant shifts following announcements.
PACCAR’s Past Earnings Performance
In the previous earnings release, PACCAR missed EPS by $0.01, resulting in a 1.85% increase in the share price the following trading session. Here’s a quick look at PACCAR’s past performance and the subsequent price changes:
| Quarter | EPS Estimate | EPS Actual | Price Change (%) |
|—|—|—|—|
| Q2 2024 | $2.14 | $2.13 | 2.0% |
| Q1 2024 | $2.20 | $2.27 | 0.0% |
| Q4 2023 | $2.21 | $2.70 | -0.0% |
| Q3 2023 | $2.12 | $2.34 | -0.0% |
Analyzing Market Sentiment
Understanding market sentiment and expectations is essential for investors. Currently, the consensus rating among analysts for PACCAR is Neutral, with an average one-year price target of $108.25, suggesting a potential 1.67% downside.
Peer Analysis: A Comparative Look
To gain a comprehensive perspective, let’s analyze the analyst ratings and average 1-year price targets of three significant industry players: Cummins, Westinghouse Air Brake, and Allison Transmission.
*
Cummins:
Neutral consensus with an average 1-year price target of $329.88, suggesting a potential 199.65% upside.*
Westinghouse Air Brake:
Outperform consensus with an average 1-year price target of $220.0, suggesting a potential 99.84% upside.*
Allison Transmission:
Neutral consensus with an average 1-year price target of $92.75, implying a potential 15.75% downside.Key Takeaways from Peer Analysis
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|—|—|—|—|—|
| PACCAR | Neutral | -1.23% | $1.79B | 6.49% |
| Cummins | Neutral | 1.83% | $2.19B | 7.80% |
| Westinghouse Air Brake | Outperform | 9.85% | $874M | 2.76% |
| Allison Transmission | Neutral | 4.21% | $394M | 13.23% |
While PACCAR ranks at the bottom for Revenue Growth among its peers, it holds the top spot for Return on Equity, showcasing strong financial health and efficient use of equity capital.
PACCAR: Delving into Financials
Market Capitalization:
PACCAR’s market capitalization surpasses industry averages, demonstrating a dominant size relative to peers and a strong market position.Revenue Growth:
Over the past three months, PACCAR experienced a revenue decline of approximately -1.23% as of June 30, 2024. This signifies a reduction in the company’s top-line earnings, placing them behind their industry peers.Net Margin:
PACCAR boasts an exceptional net margin, exceeding industry averages. With a remarkable net margin of 12.8%, the company showcases strong profitability and efficient cost management.Return on Equity (ROE):
PACCAR’s ROE also stands out, exceeding industry averages. A remarkable ROE of 6.49% highlights the company’s efficient use of equity capital and strong financial health.Return on Assets (ROA):
PACCAR’s ROA surpasses industry averages, reaching an impressive 2.75%, demonstrating effective asset utilization and strong financial performance.Debt Management:
PACCAR maintains a debt-to-equity ratio below the industry average at 0.81, indicating a lower dependency on debt financing and a more conservative financial approach.Stay Updated with PACCAR’s Earnings Calendar
To track all earnings releases for PACCAR, visit our dedicated earnings calendar.
PACCAR remains a prominent player in the truck manufacturing industry, with a strong financial foundation and a focus on delivering premium products. Investors will be closely watching the company’s earnings report and guidance for clues about its future performance and market trajectory.