Paccar Faces EPS Drop Amid Industry Challenges

In the latest report, Paccar has revealed significant projected declines in earnings per share (EPS) and revenue, indicating increased pressure on its stock price ahead of the earnings disclosure scheduled for October 22, 2024.

Date: 17-09-2024

AI Rating: 4

Paccar (PCAR) has recently showcased a +0.61% move in stock price, outperforming the S&P 500's daily gain of 0.13%. However, a deeper dive into the upcoming earnings report suggests potential headwinds for investors.

Projected Earnings Per Share (EPS) for the upcoming quarter is set at $1.82, representing a concerning 22.22% decrease compared to the same quarter a year prior. Additionally, revenue estimates forecast a total of $7.56 billion, which indicates an 8.13% decline year-over-year as well.

For the annual outlook, the Zacks Consensus Estimates predict annual earnings per share of $8.08 and revenue of $31.84 billion, reflecting declines of -15.92% and -4.44%, respectively. These negative trends in EPS and revenue growth are likely to raise alarms for investors.

The Zacks Rank system currently assigns Paccar a rank of #3 (Hold), which suggests that it may not be the most favorable investment at this moment. The forward P/E ratio is at 11.78, lower than the industry average of 13.33, which points to a potential undervaluation but may not sufficiently offset the anticipated earnings drop.

In summary, the analysis from the recent report indicates a cautious outlook for Paccar, evidenced by the projected lowers in EPS and revenue growth. Investors should prepare for the earnings disclosure on October 22, 2024, as the current trends may lead to volatility in stock prices.

Stocks: PCAR