Earnings Preview: Caterpillar

Caterpillar Inc.. (CAT) is expected to report Q3 earnings Tuesday Oct. 21 before market open, with a conference call scheduled for 11:00 am ET.

Guidance

Analysts are looking for EPS of $1.42 on revenue of $12.45B. The consensus range for EPS is $1.31 to $1.51, while the consensus range for revenue is $12.23B to $12.66B, according to First Call.

Analyst Views

Caterpillar narrowed its FY08 EPS guidance when it reported its Q2 earnings results. The company expects FY08 EPS of $6.00 vs. the prior guidance of $5.64 to $6.18. The consensus for FY08 EPS is $6.05. Caterpillar also raised it FY08 revenue guidance to $50B vs. prior guidance of $47.2B to $49.5B. The consensus for FY08 revenue is $50.46B. Caterpillar stated on August 28, it expects FY08 revenue to top guidance of $50B.

Bernstein stated in July that it believes Caterpillar's guidance for FY08 is too conservative, and the firm believes that the company's margins will increase because it will be able to raise prices by amounts that will exceed its cost increases. The firm also stated on October 3, it believes that Caterpillar is well-positioned to benefit from what the firm sees as "explosive" growth in the Chinese construction market. The firm maintained its Outperform rating on the company.

Comments

[don2m:]

CAT is in a class by itself globally and has positioned itself strategically to capture and serve the world wide heavy equipment need. Their business model is unique in that they sell a piece of equipment and when it wears out they rebuild it....from birth to death so to speak.
The stock has been hammered but as a long term investment there probably is no finer company....world wide !

2008 Oct 20 09:30 PM