Trucking company PACCAR (NASDAQ: PCAR) will be reporting results this Tuesday before the bell. Here’s what investors should know.
PACCAR beat analysts’ revenue expectations last quarter, reporting revenues of $6.82 billion, down 13.7% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ revenue estimates.
Is PACCAR a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting PACCAR’s revenue to decline 8.3% year on year, improving from the 14.9% decrease it recorded in the same quarter last year.
Analysts covering the company have generally 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.
Looking at PACCAR’s peers in the heavy machinery segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Wabtec delivered year-on-year revenue growth of 13%, meeting analysts’ expectations, and Greenbrier reported a revenue decline of 22.9%, falling short of estimates by 11.5%. Wabtec traded up 4.6% following the results while Greenbrier was also up 2.9%.
Read our full analysis of Wabtec’s results here and Greenbrier’s results here.
There has been positive sentiment among investors in the heavy machinery segment, with share prices up 15% on average over the last month. PACCAR is up 12.9% during the same time and is heading into earnings with an average analyst price target of $127.96 (compared to the current share price of $127).
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