CAT - Caterpillar Q1 2023 earnings on deck what to expect

2023-04-26 15:36:04 ET

• Caterpillar ( NYSE: CAT ) is scheduled to announce Q1 earnings results on Thursday, April 27th, before market open.
• The consensus EPS estimate is $3.79 and the consensus revenue estimate is $15.27B.
• Over the last 2 years, CAT has beaten EPS estimates 88% of the time and has beaten revenue estimates 75% of the time.
• Over the last 3 months, EPS estimates have seen 9 upward revisions and 3 downward. Revenue estimates have seen 5 upward revisions and 3 downward.
• The company on Jan. 31 reported Q4 Non-GAAP EPS of $3.86, missing estimates by $0.17. However, revenue of $16.6B was +20.3% Y/Y and ahead of consensus by $760M.
• CAT has a Quant rating of "Strong Buy", with a 4.70 rating score.
• CAT has an industry ranking of 4 out of 42 among Construction Machinery and Heavy Trucks stocks, as per SA's Quant ranking.
• Wall Street analysts rate CAT "Hold" and Seeking Alpha authors rate the stock "Buy".
• Recent Analysis: Nicholas Ward, leader of " The Dividend Kings " Investing Group on Seeking Alpha, wrote in a recently published report , "Caterpillar is the global leader in its space, it carries an A-rated balance sheet, and it’s a dividend aristocrat, with 29-years of consecutive dividend growth. CAT's 5-year dividend growth rate is 8.66%. The stock's most recent dividend raise came in at 8.1%. And looking at the stock's relatively low payout ratio combined with strong forward growth prospects for 2023, I think another high single digit raise is likely when the stock announces its 2023 increase in June."
• Seeking Alpha contributor Luca Socci recently wrote in an earnings preview analysis , "Caterpillar will probably beat top-line estimates, while it might come short on the bottom line. However, this earnings report is not just about revenue and EPS. As I tried to explain, it's much more relevant for investors to know that margins are moving in the right direction, while inventories normalize and the order backlog, though decelerating, keeps on growing at a reasonable pace. In addition, no investor can overlook Caterpillar's efforts in the services business and the results it's achieving. For these reasons, I do believe Caterpillar is a buy as its earnings report approaches."
• Other analysis from our contributors: Caterpillar: Long-Term Growth Appears Inevitable by IM Investing.
• Recent News: Caterpillar, United Rentals downgraded to Underperform at Baird .
• Caterpillar’s union members vote for six-year contract .
• CAT stock rose 18.6% in 2022, while the benchmark S&P 500 index slipped nearly 20% for the year.
• Stock is down 7.8% so far this year as of Tuesday's close.

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