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PACCAR Inc (PCAR), headquartered in Bellevue, Washington, designs, manufactures, and provides customer support of premium light-, medium- and heavy-duty trucks under the Kenworth, Peterbilt, and DAF nameplates. Valued at $52.89 billion by market cap, the company also designs and manufactures advanced diesel engines, provides financial services, information technology, and distributes truck parts. The leading truck maker is expected to announce its fiscal second-quarter earnings for 2024 before the market opens on Tuesday, July 23.
Ahead of the event, analysts expect PCAR to report a profit of $2.13 per share on a diluted basis, down 8.6% from $2.33 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports. In the previous quarter, PCAR surpassed the consensus estimates driven by the high demand for trucks and aftermarket parts.
For the full year, analysts expect PCAR to report EPS of $8.34, down 13.2% from $9.61 in fiscal 2023.
PCAR stock has underperformed the S&P 500’s ($SPX) 23.7% gains over the past 52 weeks, with shares up 19.9% during this period. However, it outshined the Nasdaq Transportation ETF’s (FTXR) 3.2% gains over the same time frame.
On Apr. 30, PCAR’s shares closed down more than 6% after the company reported its Q1 results. It predicted a full-year CAPEX of between $700 million and $750 million, the midpoint below the consensus estimates of $728.90 million. Its net income stood at $1.2 billion, and its EPS was $2.27, beating the consensus estimate of $2.17. The company’s adjusted revenue was $8.24 billion, surpassing the Wall Street estimates of $8.08 billion.
The consensus opinion on Paccar stock is bullish, with a “Moderate Buy” rating overall. Out of 17 analysts covering the stock, five advise a “Strong Buy” rating, one suggests a “Moderate Buy” rating, and 11 analysts give a “Hold” rating. The average analyst price target for PCAR is $124.08, indicating a potential upside of 23% from the current levels.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
