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Caterpillar Inc. (CAT - Free Report) is one of the well-known names in the construction and mining machinery industry with a market capitalization of $45.95 billion. It is a leading exporter in the U.S. with more than half of its sales being generated outside the country.
Ahead of its second quarter earnings release, Caterpillar reported a 12% decline in its global retail sales for the three months ended Jun 2016, flat with April and May. The company reported that demand for heavy machinery remained sluggish in all of its core markets amid a slowdown in construction and mining activity. This does not bode well for its second quarter 2016 performance.
This does not come as surprise as Caterpillar’s results for the past few quarters have borne the brunt of a weak mining industry, low oil prices, stronger U.S. dollar and China's economic woes. Continued weakness in agriculture have also negatively impacted sales. It remains to be seen whether improvement in construction and cost reduction can provide some respite to this ailing mining and equipment behemoth.
Investors are thus awaiting Caterpillar’s results as it has long been considered a bellwether of national and global economic strength. Let’s have a quick look at the second quarter release of this Peoria, Illinois-based construction and mining equipment manufacturer.
Estimate Trend & Surprise History
Investors should note that over the past 30 days, the Zacks Consensus Estimate for the second quarter has remained stable for Caterpillar. Caterpillar has beaten the Zacks Consensus Estimate in all of the last four quarters with an average positive surprise of 2.21%.
Earnings Trump Estimates
Caterpillar raked in adjusted earnings of $1.09 cents per share, ahead of the Zacks Consensus Estimate of 96 cents. The company managed to beat estimates aided by cost management.
Caterpillar reported revenues of $10.3 billion, ahead of the Zacks Consensus Estimate of $9.99 billion.
Developments to Note
For 2016, Caterpillar projects earnings of $3.55 per share on the back of revenues in the range of $40 billion to $40.5 billion.
Zacks Rank
Currently, Caterpillar has a Zacks Rank #3 (Hold). However, this could change following Caterpillar’s earnings report which was just released.
Market Reaction
Caterpillar shares fell 0.84% in pre-market trading.
Check back later for our full write up on this Caterpillar earnings report later!
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Caterpillar's (CAT) Q2 Earnings, Revenues Beat
Caterpillar Inc. (CAT - Free Report) is one of the well-known names in the construction and mining machinery industry with a market capitalization of $45.95 billion. It is a leading exporter in the U.S. with more than half of its sales being generated outside the country.
Ahead of its second quarter earnings release, Caterpillar reported a 12% decline in its global retail sales for the three months ended Jun 2016, flat with April and May. The company reported that demand for heavy machinery remained sluggish in all of its core markets amid a slowdown in construction and mining activity. This does not bode well for its second quarter 2016 performance.
This does not come as surprise as Caterpillar’s results for the past few quarters have borne the brunt of a weak mining industry, low oil prices, stronger U.S. dollar and China's economic woes. Continued weakness in agriculture have also negatively impacted sales. It remains to be seen whether improvement in construction and cost reduction can provide some respite to this ailing mining and equipment behemoth.
Investors are thus awaiting Caterpillar’s results as it has long been considered a bellwether of national and global economic strength. Let’s have a quick look at the second quarter release of this Peoria, Illinois-based construction and mining equipment manufacturer.
Estimate Trend & Surprise History
Investors should note that over the past 30 days, the Zacks Consensus Estimate for the second quarter has remained stable for Caterpillar. Caterpillar has beaten the Zacks Consensus Estimate in all of the last four quarters with an average positive surprise of 2.21%.
Earnings Trump Estimates
Caterpillar raked in adjusted earnings of $1.09 cents per share, ahead of the Zacks Consensus Estimate of 96 cents. The company managed to beat estimates aided by cost management.
CATERPILLAR INC Price and EPS Surprise
CATERPILLAR INC Price and EPS Surprise | CATERPILLAR INC Quote
Revenues Ahead of Estimates
Caterpillar reported revenues of $10.3 billion, ahead of the Zacks Consensus Estimate of $9.99 billion.
Developments to Note
For 2016, Caterpillar projects earnings of $3.55 per share on the back of revenues in the range of $40 billion to $40.5 billion.
Zacks Rank
Currently, Caterpillar has a Zacks Rank #3 (Hold). However, this could change following Caterpillar’s earnings report which was just released.
Market Reaction
Caterpillar shares fell 0.84% in pre-market trading.
Check back later for our full write up on this Caterpillar earnings report later!
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>