Earnings Preview: Caterpillar

Apr.28.11 | About: Caterpillar Inc. (CAT)

Caterpillar (NYSE:CAT) is expected to report Q1 earnings on Friday, April 29 before the market open with a conference call scheduled for 11:00 am ET.

Guidance

Analysts are looking for EPS of $1.27 on revenue of $11.53B. The consensus range is 97c-$1.52 for EPS and revenue of $10.68B-$12.42B, according to First Call. Caterpillar reported positive results in Q4, beating both EPS and revenue estimates. On its Q4 earnings report, the company forecast FY11 EPS “near” $6.00 vs. consensus of $5.85. It said FY11 revenue would “top” $50B vs. consensus $49.77B. It also expects to see record profits in FY11. Management cited good economic growth in emerging markets, especially China, and expects to benefit from price increases in FY11. The shares have soared nearly 18% since late January, moving from $95 to approximately $112, making a fresh 52-week high of $113.93 in the process. The stock is up over 100% since June of last year. With significant positive news discounted in the shares, Q1 results will have to be exceptional to justify further upside potential.