Paccar's Upcoming Earnings: Key Metrics and Analyst Outlook

Investors are closely watching Paccar as it prepares for its upcoming earnings report. Expected declines in EPS and revenue raise concerns, while a Zacks Rank of #4 signals moderate pessimism about the company's future performance.

Date: 25-09-2024

AI Rating: 4

Paccar (PCAR) recently closed at $99.17, showing a slight daily gain of +0.38% and outperforming the S&P 500's increase of 0.25%. However, over the past month, its 3.05% growth lags behind the Auto-Tires-Trucks sector's average of 6%.

The forthcoming earnings release on October 22, 2024, is anticipated to reveal an EPS of $1.82, down 22.22% from last year. This significant decline likely signals potential headwinds for Paccar in the near term. Moreover, the revenue projection stands at $7.56 billion, reflecting an 8.13% drop year-over-year, which can further impact investor sentiment.

For the full year, earnings of $8.08 per share and revenue of $31.8 billion are expected. This represents a -15.92% shift in earnings and a -4.54% drop in revenue compared to the previous year.

Analyst sentiment appears to be cautious, with the consensus EPS projection having dropped by 0.08% in the last month. The current Zacks Rank of #4 (Sell) indicates that the company is viewed unfavorably among analysts.

Paccar's current Forward P/E ratio of 12.23 positions it at a discount relative to the industry average of 14.04. However, the PEG ratio stands at 1.53, slightly higher than the industry average of 1.47. This suggests that while the stock may be undervalued regarding earnings, growth prospects are not as favorable.

Given the current Zacks Industry Rank of 168, putting it in the bottom 34% of industries, the outlook for Paccar remains unclear. Investors should eagerly await further shifts in analyst projections leading up to the earnings report, as these can directly influence stock price performance.

Stocks: PCAR