Filed under: Earnings reports, Products and services, Caterpillar (CAT)
Earnings are to be reported Friday, April 18 by Caterpillar Inc. (NYSE: CAT). Any analyst concerns about the company’s current earnings are focused upon the weakened construction trade and flagging demand for large trucks. However, analysts site the company’s large and strong global footprint, along with capital advantages stemming from the depressed dollar, to buttress predictions that company earnings shall keep in step with the previous two quarters. Company sentiment is generally positive overall.
Analysts first quarter profit estimates for Caterpillar range mainly between 1.33 and 1.49 per share on revenue of $10.77 billion. These numbers would be in keeping with results from Q4 2007. The company seems to be holding up extraordinarily well under current economic conditions. Analysts forward outlook for Caterpillar seems positive yet guarded.
The Associated Press sites the thought of Andrew Casey, analyst for Wachovia (NYSE: WB). He indicates that Caterpillar is improving the margin on it’s engines business. Casey is quoted as stating “This should be a positive short-term catalyst for stock price action.”
I believe that steel and fuel prices have put a bit of extra drag on Caterpillar’s earnings for the first quarter. I’ll say my earnings prediction to be within a penny of 1.40, give or take.
Gary Sattler is a freelance blogger. He does not knowingly have interest in the companies mentioned in this blog post.
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