Caterpillar (CAT) is expected to report Q4 earnings on Monday, January 26 before the market open with a conference call scheduled for 11:00 am ET.
Guidance
Analysts are looking for EPS of $1.31 on revenue of $12.84B. The consensus range for EPS is $1.03-$1.42, while the consensus range for revenue is $11.75B-$13.41B, according to First Call. When the company reported its Q3 earnings it announced it maintained its FY08 EPS and revenue guidance. Caterpillar sees FY08 EPS of about $6.00 vs. consensus $5.89, and FY08 revenue topping $50B vs. consensus $51.25B. The company also stated FY09 economic outlook is "extremely uncertain." The company believes its current outlook for 2009 calls for sales and revenues to be about flat with its FY08 results.
Analyst Views
Caterpillar expects pockets of strength in global mining, energy markets and in the area of emerging market infrastructure development to offset acute weakness in North America, Europe and Japan. The company is prepared for volatility, and remains very positive about its longer-term growth prospects.
Morgan Stanley stated in January, it believes Caterpillar's risk/reward is tilted more to the negative side and that upside now seems very unlikely.The firm said recent cautious comments by the CEO of competitor Hitachi Construction support their bearish view on the company and that any stimulus package will not have much of an impact on equipment sales. Additionally, the firm believes the company's view that emerging markets revenues will grow in 2009 is very unlikely. The firm rates shares an Underweight with a $31 price target.
