Construction equipment company Caterpillar (NYSE: CAT) will be reporting results this Tuesday morning. Here’s what you need to know.
Caterpillar beat analysts’ revenue expectations last quarter, reporting revenues of $17.42 billion, up 22.2% year on year. It was a stunning quarter for the company, with a beat of analysts’ EPS estimates.
Is Caterpillar a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Caterpillar’s revenue to grow 14.4% year on year, improving from its flat revenue in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Caterpillar has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Caterpillar’s peers in the heavy machinery segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Terex delivered year-on-year revenue growth of 50.5%, beating analysts’ expectations by 4%, and Wabash reported a revenue decline of 9.1%, topping estimates by 3.6%. Terex traded down 2.7% following the results while Wabash was also down 6.8%.
Read our full analysis of Terex’s results here and Wabash’s results here.
In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the heavy machinery stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 5% on average over the last month. Caterpillar is down 16.2% during the same time and is heading into earnings with an average analyst price target of $958.83 (compared to the current share price of $814.21).
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