The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how PACCAR (NASDAQ: PCAR) and the rest of the heavy transportation equipment stocks fared in Q4.
Heavy transportation equipment companies are investing in automated vehicles that increase efficiencies and connected machinery that collects actionable data. Some are also developing electric vehicles and mobility solutions to address customers’ concerns about carbon emissions, creating new sales opportunities. Additionally, they are increasingly offering automated equipment that increases efficiencies and connected machinery that collects actionable data. On the other hand, heavy transportation equipment companies are at the whim of economic cycles. Interest rates, for example, can greatly impact the construction and transport volumes that drive demand for these companies’ offerings.
The 14 heavy transportation equipment stocks we track reported a satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 1.5%.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 29.3% since the latest earnings results.
PACCAR (NASDAQ: PCAR)
Founded more than a century ago, PACCAR (NASDAQ: PCAR) designs and manufactures commercial trucks of various weights and sizes for the commercial trucking industry.
PACCAR reported revenues of $7.36 billion, down 14.3% year on year. This print fell short of analysts’ expectations by 1.3%. Overall, it was a slower quarter for the company with a miss of analysts’ EPS estimates and a slight miss of analysts’ EBITDA estimates.
Kenworth and Peterbilt achieved excellent U.S. and Canada Class 8 retail sales market share of 30.7% in 2024. U.S. and Canada Class 8 truck industry retail sales were 268,000 units in 2024 and are estimated to be in a range of 250,000-280,000 trucks in 2025. “Infrastructure spending is driving steady demand for Kenworth and Peterbilt’s industry-leading vocational trucks,” said Laura Bloch, PACCAR senior vice president.
The stock is down 22.6% since reporting and currently trades at $85.01.
Is now the time to buy PACCAR? Access our full analysis of the earnings results here, it’s free.
Best Q4: REV Group (NYSE: REVG)
Offering the first full-electric North American fire truck, REV (NYSE: REVG) manufactures and sells specialty vehicles.
REV Group reported revenues of $525.1 million, down 10.4% year on year, outperforming analysts’ expectations by 6.5%. The business had an incredible quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
The market seems unhappy with the results as the stock is down 5.4% since reporting. It currently trades at $25.82.
Is now the time to buy REV Group? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Wabtec (NYSE: WAB)
Also known as Wabtec, Westinghouse Air Brake Technologies (NYSE: WAB) provides equipment, systems, and related software for the railway industry.
Wabtec reported revenues of $2.58 billion, up 2.3% year on year, falling short of analysts’ expectations by 0.6%. It was a softer quarter as it posted a significant miss of analysts’ EBITDA estimates.
As expected, the stock is down 25% since the results and currently trades at $156.
Read our full analysis of Wabtec’s results here.
Wabash (NYSE: WNC)
With its first trailer reportedly built on two sawhorses, Wabash (NYSE: WNC) offers semi trailers, liquid transportation containers, truck bodies, and equipment for moving goods.
Wabash reported revenues of $416.8 million, down 30.1% year on year. This result surpassed analysts’ expectations by 0.9%. Aside from that, it was a slower quarter as it recorded full-year EPS guidance missing analysts’ expectations.
Wabash pulled off the highest full-year guidance raise but had the slowest revenue growth among its peers. The stock is down 36.8% since reporting and currently trades at $9.88.
Read our full, actionable report on Wabash here, it’s free.
Douglas Dynamics (NYSE: PLOW)
Once manufacturing snowplows designed for the iconic jeep vehicle precursor, Douglas Dynamics (NYSE: PLOW) offers snow and ice equipment for the roads and sidewalks.
Douglas Dynamics reported revenues of $143.5 million, up 6.9% year on year. This number lagged analysts' expectations by 7.5%. All in all, it was a mixed quarter for the company.
Douglas Dynamics had the weakest performance against analyst estimates among its peers. The stock is down 13.5% since reporting and currently trades at $22.
Read our full, actionable report on Douglas Dynamics here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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