Earnings To Watch: PACCAR (PCAR) Reports Q2 Results Tomorrow

Trucking company PACCAR (NASDAQ:PCAR) will be announcing earnings results this Tuesday morning. Here’s what to look for.

PACCAR missed analysts’ revenue expectations by 0.8% last quarter, reporting revenues of $6.91 billion, down 16% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ adjusted operating income 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 17.7% year on year to $6.8 billion, a further deceleration from the 2.1% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.28 per share.

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 missed Wall Street’s revenue estimates twice over the last two years.

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 delivered year-on-year revenue growth of 2.7%, beating analysts’ expectations by 7.3%, and Lindsay reported revenues up 21.7%, topping estimates by 4.6%. Greenbrier traded up 21.1% following the results while Lindsay was also up 3.9%.

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 6.5% on average over the last month. PACCAR is up 2.1% during the same time and is heading into earnings with an average analyst price target of $102.45 (compared to the current share price of $93.72).

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