PACCAR (PCAR) Reports Q2: Everything You Need To Know Ahead Of Earnings
Trucking company PACCAR (NASDAQ:PCAR) will be announcing earnings results tomorrow before market open. Here's what to look for.
PACCAR met analysts' revenue expectations last quarter, reporting revenues of $8.24 billion, up 2.3% year on year. It was a very strong quarter for the company, with an impressive beat of analysts' organic revenue estimates and a decent beat of analysts' earnings estimates.
Is PACCAR a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting PACCAR's revenue to decline 2.2% year on year to $8.25 billion, a reversal from the 24.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.14 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. PACCAR has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 3.3% on average.
Looking at PACCAR's peers in the heavy machinery segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Greenbrier's revenues decreased 21% year on year, missing analysts' expectations by 10.9%, and Lindsay reported a revenue decline of 15.4%, falling short of estimates by 3.6%. Greenbrier traded down 6.1% following the results while Lindsay was up 8.6%.
Read our full analysis of Greenbrier's results here and Lindsay's results here.
There has been positive sentiment among investors in the heavy machinery segment, with share prices up 4.5% on average over the last month. PACCAR's stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $120.3 (compared to the current share price of $107.76).
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