Earnings Outlook For PACCAR

PACCAR PCAR is preparing to release its quarterly earnings on Tuesday, 2025-04-29. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect PACCAR to report an earnings per share (EPS) of $1.59.

The market awaits PACCAR's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Earnings Track Record

During the last quarter, the company reported an EPS missed by $0.03, leading to a 3.39% increase in the share price on the subsequent day.

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

Tracking PACCAR's Stock Performance

Shares of PACCAR were trading at $91.89 as of April 25. Over the last 52-week period, shares are down 13.28%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.

Analyst Insights on PACCAR

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on PACCAR.

Analysts have given PACCAR a total of 10 ratings, with the consensus rating being Neutral. The average one-year price target is $108.8, indicating a potential 18.4% upside.

Analyzing Analyst Ratings Among Peers

In this comparison, we explore the analyst ratings and average 1-year price targets of Cummins, Westinghouse Air Brake and Allison Transmission, three prominent industry players, offering 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 $352.92, suggesting a potential 284.07% upside.
• Analysts currently favor an Neutral trajectory for Westinghouse Air Brake, with an average 1-year price target of $200.0, suggesting a potential 117.65% upside.
• Analysts currently favor an Neutral trajectory for Allison Transmission, with an average 1-year price target of $103.75, suggesting a potential 12.91% upside.

Peers Comparative Analysis Summary

The peer analysis summary offers a detailed examination of key metrics for Cummins, Westinghouse Air Brake and Allison Transmission, providing valuable insights into their respective standings within the industry and 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.

Unveiling the Story Behind PACCAR

Paccar is a leading manufacturer of medium- and heavy-duty trucks under the premium nameplates Kenworth and Peterbilt, which are primarily sold in the Americas and Australia, and DAF, which primarily services Europe and South America. The trucks segment (74% sales) goes to market through a network of 2,200 independent dealers. Paccar maintains an internal finance subsidiary that provides retail and wholesale financing for customers and dealers (6% sales). In recent years, Paccar has aggressively grown its parts business (20% sales), which include engines, axles, and transmissions for its own truck brands as well as independent producers. The company commands approximately 30% of the Class 8 market share in North America and 15% of the heavy-duty market share in Europe.

PACCAR's Financial Performance

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 -12.88% in revenue growth as of 31 December, 2024. This signifies a reduction in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: PACCAR's net margin excels beyond industry benchmarks, reaching 11.03%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 4.82%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 2.01%, the company showcases effective utilization of assets.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.91.

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.