Paccar's Upcoming Earnings: EPS and Revenue Decline Ahead

Recent report reveals Paccar's stock performance lagging behind peers while upcoming earnings project a substantial drop in EPS and revenue. Investors await analyst revisions, with the company maintaining a Zacks Rank of #3 (Hold).

Date: 10-09-2024

AI Rating: 4

Paccar (PCAR) has shown a modest increase in stock price of +1.84%, outperforming the S&P 500's gain. However, this recent performance is overshadowed by a disappointing forecast in upcoming earnings. The anticipated Earnings Per Share (EPS) of $1.82 signifies a significant drop of 22.22% compared to last year's quarter.

Furthermore, projected revenue of $7.56 billion indicates an 8.13% decrease compared to the same quarter last year. For the full year, estimates indicate a total EPS of $8.08, representing a decrease of 15.92%, and revenue at $31.84 billion, down by 4.44% from the prior year. These figures contribute to a lukewarm sentiment towards the stock, especially as it has performed below sector expectations.

As for Paccar's valuation metrics, it displays a Forward P/E ratio of 11.54, which is below its industry average of 12.63. While this might suggest a potentially undervalued stock, the prospect of a declining profit margin is a substantial concern. The PEG ratio is recorded at 1.44, slightly above the average for its industry at 1.39.

Paccar's Zacks Rank of #3 (Hold) indicates a neutral stance on the stock, which reflects a general market indecision. Analysts' estimate revisions will be crucial in determining Paccar's stock movement, given their potential impact on investor confidence and market perception.

Overall, while there are aspects of Paccar's valuation that might be attractive, the forecasts for falling EPS and revenue overall present a mixed outlook. Investors will need to keep a close watch on upcoming earnings, as further downward revisions could trigger negative stock movements.

Stocks: PCAR