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PACCAR (PCAR) to Report Q1 Earnings: What's in the Offing?

Zacks Equity Research

PACCAR Inc. PCAR is scheduled to report first-quarter 2019 financial results on Apr 30, before the market opens. In the last reported quarter, the company delivered a positive earnings surprise of 5.1%. The company surpassed estimates in each of the trailing four quarters, the average beat being 7.6%.

Over the past year, shares of PACCAR have outperformed the industry it belongs to. The stock gained 9.7% against the industry’s decline of 2.1%.

Let’s see, how things shaped up for the upcoming announcement.

PACCAR Inc. Price and EPS Surprise

 

PACCAR Inc. Price and EPS Surprise | PACCAR Inc. Quote

 

Factors Influencing This Quarter

Robust demand in the Class 8 truck industry in the United States and Canada is likely to have positive bearings on PACCAR’s first-quarter 2019 results. In fact, for 2019, Class 8 truck industry retail unit sale in the United States and Canada is anticipated to rise 285,000-315,000.

Moreover, a large number of Europe truck industry registrations above 16 tonnes, steady Europe economic growth and higher freight activity led to increased transport activity and truck demand, thereby brightening PACCAR’s soon-to-be-released quarter’s prospects.

For the quarter under review, the Zacks Consensus Estimate for truck deliveries in the United States and Canada is pegged at 30,118 units while for Europe the figure is 16,046. For 2019, PACCAR projects retail sale of 285,000-315,000 units for the Class 8 truck industry in the United States and Canada, and 319,000-320,000 units for Europe's more than 16-tonne market.

Earnings Whispers

Our proven model does not conclusively predict earnings beat for PACCAR this quarter. This is because a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here as you will see below.

Earnings ESP: PACCAR’s Earnings ESP is -0.18% as the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $1.65 and $1.66, respectively.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: PACCAR currently carries a Zacks Rank #2.

We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.

Stocks to Consider

Here are a few auto stocks worth considering, comprising the right combination of elements to come up with an earnings beat this time around:

Wabco Holdings Inc. WBC has an Earnings ESP of +2.37% and a Zacks Rank of 3 at present. The company is expected to release financial results for first-quarter 2019 on Apr 26.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Cummins Inc. CMI has an Earnings ESP of +2.02% and a Zacks Rank #3 at present. The company’s financial results for first-quarter 2019 are slated to release on Apr 30.

Oshkosh Corporation OSK has an Earnings ESP of +1.62% and a Zacks Rank #3 at present. The company’s financial results for second-quarter 2019 are slated to release on Apr 30.

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PACCAR Inc. (PCAR) : Free Stock Analysis Report
 
Wabco Holdings Inc. (WBC) : Free Stock Analysis Report
 
Oshkosh Corporation (OSK) : Free Stock Analysis Report
 
Cummins Inc. (CMI) : Free Stock Analysis Report
 
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