Quarterly Earnings Report: Caterpillar Inc. (CAT)

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Caterpillar Inc. (CAT) tumbled -1.9% to $76.36 and the amount of shares that traded hands from sellers to buyers was 4,786,810 shares. The company declared its Q116 earnings before market opening on 22 April 2016. CAT stock traded between $77.2 and $79.18 on the day of the earnings release. EPS for the recently concluded quarter came in at $0.67 when sales were $9.46B. Analysts had been looking for $0.68 a share with $9.39B in sales.

Historical Earnings Data: Caterpillar Inc. topped earnings estimates in 7  of the trailing twelve fiscal quarters (3 financial years), and has a negative trend with an average miss rate of 58%. CAT had posted earnings per share of $1.27 for the June 2015 quarter, meeting the mean forecast of $1.27. Revenues reached 12.32B in the quarter, which was less than the consensus 12.62B projection. However, in the December 2015 quarter it recorded a net 11.03B revenue with EPS of $0.74. Wall Street had projected 11.43B and $0.69, respectively. For comparison, there was a revenue of 10.96B and earnings of $0.75 in the September 2015 quarter.

Current Quarter Outlook: The focus will now turn to the outlook or guidance for the next reporting quarter (June 2016). Analysts, on average, predict Caterpillar Inc. will report $0.98 in earnings per share (EPS) on revenue of 10.06B. The earnings-per-share consensus range is $0.92-$1.14 on sales between 9.46B and 10.74B.

Analyst Sentiment: The confidence in the future of Caterpillar Inc. (CAT) is getting weaker by the somewhat bearish sentiment (3.00 on a 5-point scale) that analysts have issued concerning it. Analysts on the average rate the stock as Hold. Research analysts at Goldman have been covering CAT stock so their up-to-date recommendation is worth a look. Goldman published a research note on January 25, 2016, lowering the stock from *Sell* to Neutral. Deutsche Bank also changed its view on December 17, 2015, downgrading shares of Caterpillar Inc. to Buy from *Hold*.

Growth Potential: The stock is trading up 36.81% versus 1-year low of $56.36 and stands -11.1% down from its peak of $89.62. The consensus price target of $72 means that the market expects Company shares to fall by -5.71 in the near future. The sell-side target prices range from $33 to $87. In the last month the stock has moved in price 1.83% with a one year change of -8.74%. The last trading session volume compares with the 6.18M average and market worth around $44.60B.

 

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