Trucking company PACCAR (NASDAQ:PCAR) will be reporting earnings tomorrow before market hours. Here’s what investors should know.

PACCAR beat analysts’ revenue expectations by 1.4% last quarter, reporting revenues of $7.70 billion, down 6.4% year on year. It was a strong quarter for the company, with a solid beat of analysts’ organic revenue estimates and a narrow beat of analysts’ adjusted operating income estimates.

Is PACCAR a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting PACCAR’s revenue to decline 12.4% year on year to $7.52 billion, a reversal from the 11.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.70 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. PACCAR has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 3% on average.

Looking at PACCAR’s peers in the heavy machinery segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Greenbrier delivered year-on-year revenue growth of 8.3%, beating analysts’ expectations by 3.1%, and Lindsay reported revenues up 3.1%, falling short of estimates by 2.1%. Greenbrier traded up 3.7% following the results while Lindsay was also up 4.9%.

Read our full analysis of Greenbrier’s results here and Lindsay’s results here.

There has been positive sentiment among investors in the heavy machinery segment, with share prices up 4.9% on average over the last month. PACCAR is up 3.6% during the same time and is heading into earnings with an average analyst price target of $115.54 (compared to the current share price of $107.31).

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