Seeking Alpha

CAT results not boosting related names

  • Caterpillar managed to burn the shorts with Q4 results today - with big expense cuts and a new $10B buyback program - but other global growth bellwethers are having none of it. Joy Global (JOY -0.8%) and Cummins (CMI -1.3%) have given back early gains to turn solidly lower and Deere (DE +0.1%) is barely hanging on.
  • "Despite our expectation that mine production will continue to increase, we expect mining companies to further reduce their capital expenditures in 2014 ... we're expecting sales in resource industries to decline modestly."
Comments (5)
  • wyostocks
    , contributor
    Comments (8856) | Send Message
     
    I wonder how many more quarters they can cut expenses to meet EPS goals.
    27 Jan 2014, 12:24 PM Reply Like
  • TRHanson
    , contributor
    Comments (172) | Send Message
     
    This isn't just a problem at CAT. Top lines haven't been doing great across the market with small to no gains. Without increasing revenues, they can only cut costs to make growth. Eventually there will be no more costs to cut.
    27 Jan 2014, 05:21 PM Reply Like
  • wil3714
    , contributor
    Comments (2052) | Send Message
     
    What you going to do, keep spending to grow revenues?
    27 Jan 2014, 07:34 PM Reply Like
  • chopchop0
    , contributor
    Comments (3846) | Send Message
     
    Considering the magnitude of the sheer short-term and long-term outperformance of CMI vs CAT, I will give CMI a free pass today.
    Long CMI since 2011 when it was trading at the same price as CAT (mid $80). Happily out of CAT after dumping it at $90 last fall.
    27 Jan 2014, 12:45 PM Reply Like
  • june1234
    , contributor
    Comments (3094) | Send Message
     
    Despite showing revenues down 16% yr over yr CAT announced another buyback today, the others didn't
    27 Jan 2014, 02:36 PM Reply Like
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