Construction equipment company Caterpillar (NYSE:CAT) will be reporting results this Tuesday before the bell. Here’s what to look for.
Caterpillar missed analysts’ revenue expectations by 2.6% last quarter, reporting revenues of $14.25 billion, down 9.8% year on year. It was a softer quarter for the company, with a miss of analysts’ adjusted operating income estimates and a miss of analysts’ EPS estimates.
Is Caterpillar a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Caterpillar’s revenue to decline 1.9% year on year to $16.38 billion, improving from the 3.6% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $4.90 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings.
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 7.6%, beating analysts’ expectations by 3.4%, and Lindsay reported revenues up 21.7%, topping estimates by 4.6%. Terex traded down 1.8% following the results while Lindsay was up 3.9%.
Read our full analysis of Terex’s results here and Lindsay’s results here.
Investors in the heavy machinery segment have had steady hands going into earnings, with share prices flat over the last month. Caterpillar is up 9.6% during the same time and is heading into earnings with an average analyst price target of $403.13 (compared to the current share price of $428.95).
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