That said, Zakaria’s second-quarter EPS estimate of $2.91, and full-year forecast of $12.34, are below the consensus given concerns over the outlook for China and the rally in the U.S. “Based on recent comments from management…we expect to speak positively to demand and order trends in most markets ex-China, which remains fluid,” Zakaria wrote in a note to clients last week. Morgan’s Zakaria reiterated the overweight rating that’s been on the stock for at least the past three years and the price target of $205. Some other consensus analyst estimates for Caterpillar’s second quarter include business segment sales of $6.29 billion for Construction Industries, $5.17 billion for Energy & Transportation and $2.93 billion from Resource Industries. Since the end of May, the FactSet consensus for second-quarter earnings per share has stayed at $3.01, while the full-year consensus has increased to $12.47 from $12.44, even as the stock has lost 9.1% since May 31.įor revenue, the FactSet consensus has slipped to $14.28 billion from $14.29 billion on May 31, while the full-year estimate has dipped to $56.68 billion from $56.76 billion. “The vast majority of the markets we serve are still quite strong.” “e haven’t seen signs of slowdown in our markets,” said Chief Executive Jim Umpleby at the Bernstein Strategic Decisions Conference on June 1, according to a FactSet Transcript.

Morgan analyst Tami Zakaria described as “broadly positive” comments at an investor conference in early June, in which Caterpillar management “negated recession fears” by saying demand remained strong, and that the only thing keeping sales from being higher was supply-chain constraints. During Caterpillar’s stock selloff, the Dow Jones Industrial AverageĬaterpillar’s plunge came even after what J.P. Keep in mind, however, that the stock’s pre-earnings bounce followed a 26% plunge over five weeks to the 20-month closing low of $169.94 on July 20, at a time the broader stock market was falling amid fears that a surprisingly big jump inflation would prompt a more aggressive reaction by the Federal Reserve to slow growth. Pulled back 1.4% in midday trading Monday, after it jumped 5.5% on Friday to a six-week high, and soared about 15% in the last couple of weeks. And on the days of the past 17 quarterly reports, the stock has fallen 14 times.

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