Earnings Preview: Caterpillar

| About: Caterpillar Inc. (CAT)

Caterpillar (NYSE:CAT) is expected to report Q2 earnings on Wednesday, July 25 before the market open with a conference call scheduled for 11:00 am ET.


Analysts are looking for EPS of $2.28 on revenue of $17.11B. The consensus range is $2.06-$2.41 for EPS and revenue of $16.15B-$17.47B, according to First Call. Caterpillar reported mixed results in Q1, handily beating EPS but missing revenue estimates. On its Q1 earnings report, the company raised its FY12 EPS view to $9.50 from $9.25, consensus $9.54. They also reaffirmed FY12 revenue of $68B-$72B, consensus $71.3B. Despite noting that U.S. construction remained depressed, and that the economies of Europe, China and Brazil had slowed, management expected positive growth going forward. Sentiment on the Street has been mixed over the past three months.

Analyst Views

On July 6, Wells Fargo (NYSE:WFC) removed Caterpillar from its Priority Stock list. After conducting channel checks, Wells said the company's growth will be weaker than expected. It reduced its price target range on the stock to $99-$102 from $127-$130. The shares have traded sharply lower following Q1 results, falling from around $108 to a recent $82.54. They have fallen approximately 30% from recent 52-week highs of $116.95 made in February.