Caterpillar Inc. (CAT - Free Report) is a world renowned name in the construction and mining machinery industry with a market capitalization of $62.73 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 7% rise in global retail sales for the three months ended June 2017. This upbeat growth figure follows an 8% rise in May and 1% increase in April. The improvement in June sales was driven by the Asia-Pacific region and the construction sector.
Lately, the construction sector in Asia Pacific has shown promise while the leading indicators of U.S. non-residential construction signal robust conditions ahead. This is welcome news for the behemoth whose top-line has been battered last year by the weak mining industry, low oil prices, stronger U.S. dollar and China's economic woes. Amid this backdrop, the company had resorted to aggressive cost reduction to sustain margins in the wake of low demand.
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 last 7 days, the Zacks Consensus Estimate for the second quarter has moved up 5% for Caterpillar. Coming to the earnings surprise, Caterpillar has an impressive track record, beating the Zacks Consensus Estimate in all of the last four quarters, with an average positive surprise of 40.25%.