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Stock Market & Financial Investment News

News Breaks
April 19, 2013
11:22 EDTCATEarnings Preview: Caterpillar sees Q1 sales, profit down from prior year
Caterpillar (CAT) is expected to report first quarter earnings on Monday, April 22 before the market open with a conference call scheduled for 11:00 am ET. Caterpillar is a manufacturer of mining and construction equipment. EXPECTATIONS: Analysts are looking for earnings per share of $1.42 on revenue of $13.72B, according to First Call. The consensus range for EPS is $1.20-$1.70 on revenue of $12.53B-$14.65B. LAST QUARTER: Caterpillar reported fourth quarter EPS of $1.04 against estimates for $1.70, though its results included a charge of $580M, or 87c per share. Q4 revenue came in at $16.08B against estimates for $16.12B. In its Q4 report, the company forecast Q1 sales and profit significantly lower on a year-over-year basis. Management said, “While we are not providing a specific sales and profit outlook for 1Q13, we are expecting that they are likely to be significantly lower than 1Q12. The middle of our full-year outlook for sales is about $2B below 2012 levels. We expect that revenue will decline more than $2B in 1Q13 compared with 1Q12. Much of the expected decline in Q1 sales is a result of the continuation of reduced production as dealers are expected to continue to lower their new machine inventories. We expect that dealer inventory reductions will be negative to sales in 1Q13, while in 1Q12 dealers increased inventory which benefited Caterpillar. Profit is also expected to be significantly lower in 1Q13 versus 1Q12—a result of lower expected sales and the negative cost impact of continuing low production levels and declining inventory.” STREET RESEARCH: Street research has been mixed in the weeks leading up to Caterpillar's Q1 earnings report. Sentiment was positive early in the quarter, but turned negative over the past month. On January 29, CLSA upgraded Caterpillar to a Buy from Outperform and raised its price target to $115 from $105. Standpoint Research initiated the shares with a Buy rating and a price target of $105 on March 20. On April 3, Goldman downgraded Caterpillar to a Neutral from a Buy, citing a reduced outlook for iron ore prices and mining equipment capital expenditures. The firm no longer saw upside to consensus estimates given the oversupplied commodity environment and lowered their price target to $101 from $116. PRICE ACTION: Caterpillar’s shares have traded approximately 17% lower since Q4’s results were released in late January. In late morning trading ahead of Monday's Q1 report, Caterpillar’s shares are up 0.2%.
News For CAT From The Last 14 Days
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December 19, 2014
06:36 EDTCATObama administration to ease many parts of Cuba embargo, NY Times says
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December 18, 2014
11:31 EDTCATCaterpillar sales trends suggest 'muted' 2015 outlook, says Wells Fargo
Wells Fargo says Caterpillar's November retail sales trends were weak with growth trends decelerating from October in all segments. Wells believes weakening demand trends suggest Caterpillar may provide "a muted" outlook for 2015, and the firm stays below consensus with its 2015 expectations. Wells has a Market Perform rating on Caterpillar.
09:47 EDTCATCaterpillar reports retail machines sales down 10% in three months end November
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December 16, 2014
09:59 EDTCATOn The Fly: Analyst Downgrade Summary
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08:53 EDTCATCaterpillar downgraded to Underperform from Neutral at Macquarie
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08:24 EDTCATCaterpillar downgraded to Underperform from Neutral at Macquarie

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