Tomorrow, before market open, PACCAR (PCAR) is set to release its fourth-quarter 2023 results. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share and revenues is $2.20 and $8.18 billion, respectively.

The consensus estimate for PACCAR’s earnings per share has increased by 3 cents in the past seven days, indicating potential growth of 25% compared to the year-ago reported number. Moreover, the Zacks Consensus Estimate for its quarterly revenues suggests a 6% year-over-year increase.

Over the last four quarters, PACCAR exceeded earnings estimates each time with an average surprise of 15.99%.

Factors at Play

Robust demand for its Class 8 heavy-duty trucks is expected to have driven PACCAR’s trucking revenues in the Q4 2023. Leading brands such as Kenworth, DAF, and Peterbilt are likely contributors to deliveries. Additionally, an increase in demand for aftermarket parts, propelled by high truck utilization and an aging fleet, could positively impact revenues from the Parts segment. The Financial Services segment may also exhibit significant growth.

Earnings Forecast

PACCAR has an Earnings ESP of +2.67% and a Zacks Rank of 3, increasing the likelihood of an earnings beat. This suggests a positive outlook for the company’s upcoming earnings announcement.

Comparison with Peers

Several other players in the auto industry, including General Motors (GM), Ford (F), and BorgWarner (BWA), are also predicted to surpass earnings estimates for the quarter to be reported, based on a favorable combination of elements according to the Zacks model.

General Motors, with an Earnings ESP of +3.47%, and Ford, with an Earnings ESP of +4.93%, are anticipated to deliver strong results. Similarly, BorgWarner, with an Earnings ESP of +0.88%, is expected to outperform in the earnings release.