Paccar (PCAR) is expected to report Q2 earnings before market open Tuesday, July 22, with a conference call scheduled for 9:00 a.m. ET.
Analysts are looking for EPS of 84c on revenue of $3.72B. The consensus range is 80c to 89c for EPS, and $3.56B to $3.97B for revenue, according to First Call. The company had previously stated that going through 2008, it expects that R&D will be comparable to the last few quarters of 2007, and it expects to see continued financial services growth in Europe. In Q1, Paccar reported EPS and revenue that beat estimates.
However on June 4, the company was downgraded at UBS to Sell from Neutral, as UBS said the risk/reward profile for owning Machinery stocks given macro challenges and valuations. The firm downgraded the company due to weak US truck demand. On July 10, Wachovia lowered second half 2008 and 2009 estimates for Paccar and much of the Industrials, Automotive and Machinery sectors citing the weaker outlook and higher input costs.