What to Expect From Caterpillar's Next Quarterly…

What to Expect From Caterpillar's Next Quarterly Earnings Report

Irving, Texas-based Caterpillar Inc. (CAT) operates in the industrial goods sector, specializing in construction and mining equipment, diesel and natural gas engines, and diesel-electric locomotives. With a market cap of $189.7 billion, it is a global leader in providing innovative products and services that drive sustainable infrastructure development across multiple industries. The company is expected to announce its Q3 earnings on Tuesday, Oct. 29.

Ahead of the event, analysts expect the industrial company to report a profit of $5.36 per share, a decrease of 2.9% from $5.52 per share reported in the year-ago quarter. However, the company has surpassed the consensus estimates in the past four quarters. CAT reported adjusted EPS of $5.99 in Q2 2024, exceeding the consensus estimate by an 8.3% margin.

In fiscal 2024, analysts expect Caterpillar to report an EPS of $21.90, up 3.3% from $21.21 in fiscal 2023. In addition, EPS is expected to grow 3.6% year-over-year to $22.69 in fiscal 2025.

CAT stock is up 44.8% over the past 52 weeks, outperforming the S&P 500 Index’s ($SPX) 34.4% gains and the Industrial Select Sector SPDR Fund’s (XLI) 35.8% returns over the same time frame.

Caterpillar stock rose over 3% on Aug. 6, driven by strong pricing power in its Q2 results. Despite a $431 million drop in operating profit from lower sales volume, price realization boosted profit by $578 million. Management also raised its 2024 adjusted operating profit margin guidance above the high end of its target range, even as full-year revenue is expected to decline by 1.5%, which reassured investors.

The consensus opinion on Caterpillar stock is cautiously optimistic, with a “Moderate Buy” rating overall. Out of the 21 analysts covering the stock, seven recommend a “Strong Buy,” one advises a “Moderate Buy,” 10 suggest a “Hold” rating, and three give a “Strong Sell” rating. As of writing, CAT is trading above the average target price of $372.21.

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On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

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