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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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November 21, 2014
16:20 EDTCATOn The Fly: Closing Wrap
Stocks on Wall Street gained after China's central bank cut interest rates for the first time in over two years to bolster its economy. Additionally, the head of Europe's central bank said he was determined to do what is needed to ensure the area's economy does not once again fall into crisis. ECONOMIC EVENTS: In the U.S., the Kansas City Fed manufacturing index for November had a reading of 7, compared to the consensus forecast for a reading of 6. In Asia, the People's Bank of China unexpectedly cut interest rates, slashing the one-year lending rate by 40 basis points and the one-year deposit rate by 25 basis points. The move, which was the central bank's first interest rate cut since 2012, surprised markets around the globe. In Europe, European Central Bank President Mario Draghi said indicators have been declining to levels he would deem "excessively low" and that he is determined to use more aggressive measures, such as large scale asset purchases, as needed. COMPANY NEWS: Microsoft (MSFT) was the worst performer on the Dow after Jefferies initiated coverage of the stock with an Underperform rating. Microsoft's stock has rallied 30% in the last year, but the company is still facing the same fundamental problems as in previous years, Jefferies analyst John DiFucci wrote. He set a $40 price target on the shares, which slipped 74c, or 1.5%, to $47.97. MAJOR MOVERS: Among the notable gainers was Ross Stores (ROST), which advanced $6.06, or 7.28%, to $89.27 after the company reported stronger than expected Q3 results. Also higher were shares of Caterpillar (CAT), which rose $4.36, or 4.27%, to $106.45 amid the quantitative easing actions taken abroad and after research firm Stifel initiated coverage of the stock with a Buy rating. Among the noteworthy losers was GameStop (GME), which sunk $5.68, or 13.05%, to $37.86 after the video game retailer's third quarter results, as well as its fourth quarter and full year profit forecasts, trailed consensus estimates. Also lower were shares of The Gap (GPS), which dropped $1.68, or 4.19%, to $38.46 after the owner of Banana Republic, Old Navy and its namesake clothing brand lowered its fiscal year profit outlook. INDEXES: The Dow rose 91.06, or 0.5%, to 17,810.06, the Nasdaq gained 11.10, or 0.24%, to 4,712.97, and the S&P 500 added 10.75, or 0.52%, to 2,063.50.
12:10 EDTCATCaterpillar jumps after Stifel puts Buy rating on shares
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10:01 EDTCATOn The Fly: Analyst Initiation Summary
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05:59 EDTCATCaterpillar initiated with a Buy at Stifel
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November 20, 2014
09:20 EDTCATCaterpillar reports retail machines sales down 9% in three months end October
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November 12, 2014
09:54 EDTCATCaterpillar reaffirms 2014 EPS outlook about $6.50, consensus $6.56
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