PACCAR Inc Anticipates Q1 Earnings Drop Amid Market Challenges

PACCAR Inc (PCAR), valued at $47.5 billion by market capitalization, is a major player in the industrial sector. The company specializes in the design, manufacturing, and distribution of light, medium, and heavy-duty commercial trucks. Headquartered in Bellevue, Washington, PACCAR operates through three segments: Truck, Parts, and Financial Services.

Q1 2025 Earnings Preview

The market is gearing up for PACCAR’s Q1 2025 earnings report, which is scheduled for release on Tuesday, April 29, before the opening bell. Analysts expect the company to announce a profit of $1.58 per share. This marks a significant decline of 30.4% from the $2.27 per share recorded in the same quarter last year. Although PACCAR has outperformed bottom-line expectations twice in the last four quarters, it has also failed to meet projections on two occasions.

Fiscal Year Outlook

Looking ahead, analysts predict that PACCAR will report an EPS of $7.26 for fiscal 2025, indicating an 8.1% decrease from the $7.90 reported in fiscal 2024. However, a rebound is anticipated in fiscal 2026, with earnings expected to rise 18% year-over-year to $8.57 per share.

Recent Stock Performance

Over the past year, PACCAR’s stock has declined by 24.2%, underperforming both the S&P 500 Index, which gained 5.5%, and the Industrial Select Sector SPDR Fund (XLI), which saw a 3.3% return during the same period.

Following the release of lackluster Q4 results on January 28, PACCAR’s stock dropped by 2.4%. The results revealed a sales decline across its business segments—trucks, parts, and ancillary services—with total revenue of slightly over $7.9 billion. This represented a 12.9% decrease from the $9.1 billion reported in the prior year and fell short of analyst expectations. Additionally, the company’s EPS fell 38.5% from the previous year to $1.66, missing estimates by 1.2%, which led to a dip in investor confidence. However, the stock did rebound by 3.4% in the next trading session.

Analysts’ Ratings and Price Targets

Overall, analysts maintain a moderately optimistic view on PCAR stock, assigning a “Moderate Buy” rating. Of the 16 analysts covering the stock, there are six “Strong Buys,” eight “Holds,” and two “Strong Sells.” The mean price target stands at $109.44, indicating a potential upside of 22.2% from current price levels.

On the date of publication, Aditya Sarawgi 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.

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