Caterpillar Inc. Sets Stage for Q3 Earnings Report amidst Positive Market Trends
Irving, Texas-based Caterpillar Inc. (CAT) is well-known for its role in the industrial goods sector, focusing on construction and mining equipment, diesel and natural gas engines, along with diesel-electric locomotives. This company, valued at $189.7 billion, stands as a global leader in promoting sustainable infrastructure development. Investors eagerly await the company’s Q3 earnings announcement scheduled for Tuesday, Oct. 29.
Anticipated Earnings and Historical Performance
Ahead of the earnings report, analysts project that Caterpillar will post a profit of $5.36 per share, reflecting a slight decline of 2.9% from $5.52 per share from the same period last year. Despite this expected drop, Caterpillar has a strong track record, consistently exceeding consensus estimates over the past four quarters. In Q2 2024, CAT reported an adjusted EPS of $5.99, surpassing expectations by 8.3%.
Future Earnings Projections
For the fiscal year 2024, analysts predict Caterpillar will achieve an EPS of $21.90, marking a 3.3% increase from $21.21 in fiscal 2023. Further growth is expected in fiscal 2025, with estimates suggesting a 3.6% rise to $22.69.
Stock Performance and Market Comparisons
Over the past year, CAT stock has increased by 44.8%, outperforming the S&P 500 Index’s ($SPX) 34.4% gains and the Industrial Select Sector SPDR Fund’s (XLI) 35.8% returns.
On Aug. 6, Caterpillar stock jumped over 3% due to strong pricing power reflected in its Q2 results. Although the company faced a $431 million decline in operating profit due to reduced sales volume, price realization increased profit by $578 million. Furthermore, management raised its 2024 adjusted operating profit margin guidance, easing investor concerns despite projecting a 1.5% decline in annual revenue.
Analysts’ Ratings and Market Sentiment
Current sentiment around Caterpillar stock leans towards cautious optimism, earning a “Moderate Buy” rating overall. Out of 21 analysts covering the stock, seven recommend a “Strong Buy,” one suggests a “Moderate Buy,” ten propose a “Hold,” and three indicate a “Strong Sell.” CAT shares are presently trading above the average target price of $372.21.
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On the date of publication,
Sohini Mondal
did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are intended solely for informational purposes. For more information, please view the Barchart Disclosure Policy
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The views and opinions expressed herein are the author’s and do not necessarily reflect those of Nasdaq, Inc.
