Bellevue, Washington-based PACCAR Inc. (PCAR) designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks for the over-the-road and off-highway hauling of commercial and consumer goods. With a market cap of $48.8 billion, PACCAR operates through Truck, Parts, and Financial Services segments.

The industrial sector giant is set to announce its Q3 results before the market opens on Tuesday, Oct. 21. Ahead of the event, analysts expect PACCAR to report a profit of $1.13 per share, down 38.9% from $1.85 per share reported in the year-ago quarter. The company has surpassed Wall Street’s bottom-line projections twice over the past four quarters while missing on two other occasions.

For the full fiscal 2025, PCAR is expected to deliver an EPS of $5.19, down a massive 34.3% from $7.90 in 2024. While in fiscal 2026, its earnings are expected to grow nearly 12% year-over-year to $5.81 per share.

PCAR stock prices have plunged 10.3% over the past 52 weeks, notably underperforming the Industrial Select Sector SPDR Fund’s (XLI) 10.2% gains and the S&P 500 Index’s ($SPX) 13.4% returns during the same time frame.

PACCAR’s stock prices surged 6.1% and maintained a positive momentum for the next three trading sessions following the release of its better-than-expected Q2 results on Jul. 22. Although its financials remained under pressure during the quarter, they came ahead of Street expectations. PACCAR reported a notable 15.7% year-over-year decline in net sales to approximately $7 billion, but surpassed the Street's expectations by 2.5%. Meanwhile, its net income plunged by 35.5% to $723.8 million, but its EPS of $1.37 surpassed the consensus estimates by 7%.

Analysts remain cautiously optimistic about the stock’s prospects. PCAR has a consensus “Moderate Buy” rating overall. Of the 18 analysts covering the stock, opinions include six “Strong Buys,” 11 “Holds,” and one “Strong Sell.” Its mean price target of $103.73 suggests an 11.5% upside potential from current price levels.