Factors Likely to Have Influenced Earnings Results Caterpillar (NYSE:CAT)

Earnings results for Caterpillar (NYSE:CAT)

Caterpillar, Inc. is expected* to report earnings on 04/29/2021 before market open. The report will be for the fiscal Quarter ending Mar 2021. According to Zacks Investment Research, based on 10 analysts’ forecasts, the consensus EPS forecast for the quarter is $1.9300000000000002. The reported EPS for the same quarter last year was $1.6.

Caterpillar last issued its quarterly earnings results on January 28th, 2021. The industrial products company reported $2.12 earnings per share for the quarter, topping the consensus estimate of $1.49 by $0.63. The company had revenue of $11.24 billion for the quarter, compared to analysts’ expectations of $11.24 billion. Its revenue for the quarter was down 14.5% on a year-over-year basis. Caterpillar has generated $11.06 earnings per share over the last year and currently has a price-to-earnings ratio of 38.7. Caterpillar has confirmed that its next quarterly earnings report will be published on Thursday, April 29th, 2021. Caterpillar will be holding an earnings conference call on Thursday, April 29th. Interested parties can register for or listen to the call using this link.

Analyst Opinion on Caterpillar (NYSE:CAT)

25 Wall Street analysts have issued ratings and price targets for Caterpillar in the last 12 months. Their average twelve-month price target is $195.70, predicting that the stock has a possible downside of 15.76%. The high price target for CAT is $265.00 and the low price target for CAT is $101.00. There are currently 2 sell ratings, 12 hold ratings and 11 buy ratings for the stock, resulting in a consensus rating of “Hold.”

Caterpillar has received a consensus rating of Hold. The company’s average rating score is 2.36, and is based on 11 buy ratings, 12 hold ratings, and 2 sell ratings. According to analysts’ consensus price target of $195.70, Caterpillar has a forecasted downside of 15.8% from its current price of $232.30. Caterpillar has been the subject of 7 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Dividend Strength: Caterpillar (NYSE:CAT)

Caterpillar pays a meaningful dividend of 1.79%, higher than the bottom 25% of all stocks that pay dividends. Caterpillar has been increasing its dividend for 28 years. The dividend payout ratio of Caterpillar is 37.25%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, Caterpillar will have a dividend payout ratio of 54.28% next year. This indicates that Caterpillar will be able to sustain or increase its dividend.

Insiders buying/selling: Caterpillar (NYSE:CAT)

In the past three months, Caterpillar insiders have sold more of their company’s stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $32,650,920.00 in company stock. Only 0.31% of the stock of Caterpillar is held by insiders. 67.48% of the stock of Caterpillar is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

Earnings and Valuation of Caterpillar (NYSE:CAT

Earnings for Caterpillar are expected to grow by 39.52% in the coming year, from $5.44 to $7.59 per share. The P/E ratio of Caterpillar is 38.65, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 23.88. The P/E ratio of Caterpillar is 38.65, which means that it is trading at a less expensive P/E ratio than the Industrial Products sector average P/E ratio of about 50.68. Caterpillar has a PEG Ratio of 2.14. PEG Ratios above 1 indicate that a company could be overvalued. Caterpillar has a P/B Ratio of 8.74. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

More latest stories: here