NEW YORK (TheStreet) -- Shares of PACCAR (PCAR - Get Report) are gaining by 0.07% to $54.89 on Monday afternoon, as analysts are expecting the heavy machinery and vehicles company to post a year over year increase in earnings per share, but a drop in revenue for the 2015 third quarter.

PACCAR will report its latest quarterly results before the market open on Tuesday morning.

Analysts surveyed by Thomson Reuters are looking for earnings of $1.16 per share on revenue of $4.83 billion for the September ended period.

The company's earnings came in at $1.04 per diluted share on record sales of $4.93 billion for the 2014 third quarter.

PACCAR is a Bellevue, WA-based industrial company that operates in three segments including Truck, Parts, and Financial Services. The company provides products and services to customers and dealers in the U.S., Canada, Mexico, Europe and Australia.

Separately, TheStreet Ratings team rates PACCAR INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

We rate PACCAR INC (PCAR) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, notable return on equity and attractive valuation levels. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 18.3%. Since the same quarter one year prior, revenues rose by 11.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • PACCAR INC has improved earnings per share by 40.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, PACCAR INC increased its bottom line by earning $3.82 versus $3.30 in the prior year. This year, the market expects an improvement in earnings ($4.70 versus $3.82).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Machinery industry. The net income increased by 40.1% when compared to the same quarter one year prior, rising from $319.20 million to $447.20 million.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Machinery industry and the overall market, PACCAR INC's return on equity exceeds that of both the industry average and the S&P 500.
  • You can view the full analysis from the report here: PCAR