What's the outlook for PCAR's EPS in 2025?

**PACCAR's EPS is expected to face challenges in 2025.** Here's a detailed analysis: 1. **Current Estimates**: The consensus estimate for PACCAR's Q1 2025 earnings per share (EPS) is $1.61, which is an increase from the previous estimate of $1.60. This suggests that while there may be some improvement in the near term, the overall outlook remains cautious. 2. **Turbulent Market Conditions**: The truck maker has faced significant headwinds, with its stock underperforming the Auto-Tires-Trucks sector over the past month. This sector loss of 3.25% and the S&P 500's loss of 2.79% indicates a challenging environment that could impact PACCAR's financial performance. 3. **Earnings Decline Forecast**: For the full year 2025, the Zacks Consensus Estimates project earnings of $7.57 per share, which represents a -4.18% change compared to the previous year. This suggests that while there may be some recovery, it is not expected to be strong enough to make up for the lost ground. 4. **Revenue Expectations**: The forecast for revenue in 2025 is $31.73 billion, indicating a slight increase of +0.52% compared to the previous year. This modest growth is likely a result of the company's efforts to improve fuel efficiency and enhance safety features in its new product range. 5. **Analyst Ratings and Price Target**: The average analyst rating for PACCAR is "Moderate Buy" with an average target price of $121.77. This suggests that while analysts recognize potential in the company, they are also cautious due to the current market conditions. In conclusion, while there are some positive signs, such as the potential for EPS improvement in Q1 2025, the overall outlook for PACCAR's EPS in 2025 is tempered by the challenging market conditions and the expectation of earnings decline for the full year.