Construction equipment company Caterpillar (NYSE: CAT) will be announcing earnings results this Thursday before market open. Here’s what to expect.
Caterpillar beat analysts’ revenue expectations last quarter, reporting revenues of $20.54 billion, up 24% year on year. It was an incredible 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 15.5% year on year, improving from the 9.5% increase it recorded 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 Q3 results, giving us a hint as to what we can expect. Lindsay delivered year-on-year revenue growth of 5.2%, beating analysts’ expectations by 7.3%, and Wabtec reported revenues up 8.1%, falling short of estimates by 2.6%. Lindsay’s stock price was unchanged after the resultswhile Wabtec was down 2.5%.
Read our full analysis of Lindsay’s results here and Wabtec’s results here.
In the last year or so, investors have shifted their focus from one macro dynamic to the next (AI disintermediation and AI investment to geopolitical conflict, interest rates, and the health of the wider economy). While some of the heavy machinery stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.7% on average over the last month. Caterpillar is down 12.9% during the same time and is heading into earnings with an average analyst price target of $926.91 (compared to the current share price of $714.50).
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