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Can PACCAR (PCAR) Spring a Surprise this Earnings Season?
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PACCAR Inc. (PCAR - Free Report) is set to report first-quarter 2016 results before the market opens on Apr 25. In the last quarter, the company posted a negative earnings surprise of 5.75%. Let’s see how things are shaping up for this announcement.
Factors Influencing this Quarter
PACCAR benefits from a sizeable market share in the U.S. and Canada. Moreover, the company undertakes active capital deployment.
PACCAR is well positioned in the key markets due to its strategic investments. The company has invested $6 billion in capital projects for launching innovative products and new technologies in the past decade. For 2017, the company targets capital investments in the range of $375–$425 million and research and development expenses of $250–$280 million.
The company continues to expand its global network of strategically located parts distribution centers (PDC). PACCAR is optimistic about its expansion plans in South America and Russia. The DAF factory in Ponta Grossa and the establishment of a subsidiary named DAF Trucks in Russia are expected to boost earnings. Further, it is expanding the 35-year old truck factory in Denton, TX, and adding a new automated storage system for painted components. This will increase both productivity and capacity at the plant.
However, PACCAR may be affected by the expected decline in Class 8 industry retail sales in the U.S. and Canada, as well as in above 16-ton truck sales in Europe. Moreover, it faces stiff competition in the commercial trucks market.
Earnings Whispers
Our proven model does not conclusively show that PACCAR is likely to beat earnings this quarter. This is because a stock needs to have both 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:
Zacks ESP: The Earnings ESP for PACCAR is 0.00% because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 88 cents. 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 #3, which when combined with a 0.00% ESP, makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Price Performance
PACCAR’s shares rallied 17% in the last six months; outperforming the Zacks categorized Auto Manufacturers-Domestic industry’s 12% increase.
Stocks to Consider
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
CNH Industrial N.V. (CNHI - Free Report) has an earnings surprise of +33.33% and carries a Zacks Rank #2. The company’s first-quarter 2017 financial results are expected to release on Apr 27.
General Motors Company (GM - Free Report) has an earnings surprise of +4.86% and carries a Zacks Rank #3. The company’s first-quarter 2017 financial results are scheduled to release on Apr 28.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
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Can PACCAR (PCAR) Spring a Surprise this Earnings Season?
PACCAR Inc. (PCAR - Free Report) is set to report first-quarter 2016 results before the market opens on Apr 25. In the last quarter, the company posted a negative earnings surprise of 5.75%. Let’s see how things are shaping up for this announcement.
Factors Influencing this Quarter
PACCAR benefits from a sizeable market share in the U.S. and Canada. Moreover, the company undertakes active capital deployment.
PACCAR is well positioned in the key markets due to its strategic investments. The company has invested $6 billion in capital projects for launching innovative products and new technologies in the past decade. For 2017, the company targets capital investments in the range of $375–$425 million and research and development expenses of $250–$280 million.
The company continues to expand its global network of strategically located parts distribution centers (PDC). PACCAR is optimistic about its expansion plans in South America and Russia. The DAF factory in Ponta Grossa and the establishment of a subsidiary named DAF Trucks in Russia are expected to boost earnings. Further, it is expanding the 35-year old truck factory in Denton, TX, and adding a new automated storage system for painted components. This will increase both productivity and capacity at the plant.
However, PACCAR may be affected by the expected decline in Class 8 industry retail sales in the U.S. and Canada, as well as in above 16-ton truck sales in Europe. Moreover, it faces stiff competition in the commercial trucks market.
Earnings Whispers
Our proven model does not conclusively show that PACCAR is likely to beat earnings this quarter. This is because a stock needs to have both 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:
Zacks ESP: The Earnings ESP for PACCAR is 0.00% because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 88 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
PACCAR Inc. Price and EPS Surprise
PACCAR Inc. Price and EPS Surprise | PACCAR Inc. Quote
Zacks Rank: PACCAR currently carries a Zacks Rank #3, which when combined with a 0.00% ESP, makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Price Performance
PACCAR’s shares rallied 17% in the last six months; outperforming the Zacks categorized Auto Manufacturers-Domestic industry’s 12% increase.
Stocks to Consider
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Cooper Tire & Rubber Company has an Earnings ESP of +14.49% and a Zacks Rank #3. The company is slated to report first-quarter 2017 results on Apr 27. You can see the complete list of today’s Zacks #1 Rank stocks here.
CNH Industrial N.V. (CNHI - Free Report) has an earnings surprise of +33.33% and carries a Zacks Rank #2. The company’s first-quarter 2017 financial results are expected to release on Apr 27.
General Motors Company (GM - Free Report) has an earnings surprise of +4.86% and carries a Zacks Rank #3. The company’s first-quarter 2017 financial results are scheduled to release on Apr 28.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>