Construction equipment company Caterpillar (NYSE: CAT) will be reporting results this Thursday morning. Here’s what to look for.
Caterpillar beat analysts’ revenue expectations last quarter, reporting revenues of $19.13 billion, up 18% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ revenue estimates.
Is Caterpillar a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Caterpillar’s revenue to grow 13.7% year on year, a reversal from the 9.8% decrease it recorded in the same quarter last year.
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. Caterpillar has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Caterpillar’s peers in the heavy machinery segment, some have already reported their Q1 results, giving us a hint as to what we can expect. PACCAR’s revenues decreased 8.9% year on year, missing analysts’ expectations by 0.9%, and Wabtec reported revenues up 13%, in line with consensus estimates. Wabtec traded up 4.6% following the results.
Read our full analysis of PACCAR’s results here and Wabtec’s results here.
There has been positive sentiment among investors in the heavy machinery segment, with share prices up 14.1% on average over the last month. Caterpillar is up 22.9% during the same time and is heading into earnings with an average analyst price target of $772.18 (compared to the current share price of $820.50).
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