PACCAR PCAR, a trucking giant, will unveil its fourth-quarter 2023 results tomorrow, before the stock market opens. Analysts predict earnings per share of $2.20 and revenues of $8.18 billion for the quarter.
The consensus estimate for PACCAR’s earnings per share has risen by 3 cents in the past seven days, indicating a potential 25% growth from the year-ago reported figure. Additionally, the Zacks Consensus Estimate forecasts a 6% year-over-year revenue increase.
PACCAR Inc. Price and EPS Surprise
PACCAR Inc. price-eps-surprise | PACCAR Inc. Quote
Earnings Whispers
Forecasts indicate an earnings beat for PACCAR, buoyed by favorable factors such as a positive Earnings ESP (+2.67%) and a Zacks Rank of 3.
The company’s robust performance over the trailing four quarters, surpassing earnings estimates on all occasions with an average surprise of 15.99%, suggests a promising trend.
Factors at Play
The growing demand for PACCAR’s Class 8 heavy-duty trucks from leading brands—Kenworth, DAF, and Peterbilt—is expected to have bolstered trucking revenues in the fourth quarter of 2023. A projected increase in deliveries from the prior quarter and a rise in aftermarket parts sales are bright spots for the company.
The estimated revenue growth in the Parts segment, coupled with the expected improvement in gross margins, further amplifies PACCAR’s position in the market. The Truck and Financial Services segments are also anticipated to contribute to the company’s strong quarterly performance.
Other Stocks With Favorable Combination
In addition to PACCAR, several other players in the auto space have a favorable combination of elements to potentially surpass earnings estimates in the upcoming quarter.
General Motors (GM), with an Earnings ESP of +3.47% and a Zacks Rank #1, and Ford (F), with an Earnings ESP of +4.93% and a Zacks Rank #3, are among the companies forecasted to deliver earnings beats. BorgWarner (BWA) also stands out with an Earnings ESP of +0.88% and a Zacks Rank #3.
Stay updated with the fourth-quarter results of these companies to gauge the performance of the auto industry.
