On April 24, 2006, Caterpillar
- Sales and per-share earnings blew away Street estimates. For example, analysts expected $1.05 in EPS but got $1.20 per diluted stub instead. According to a Reuters report, management attributed the gains to increased demand for commodities and a booming construction market.
- Margins expanded across the board because of cost controls and, notably, price increases. Executives couldn't comment on whether the company would be able to maintain pricing power, saying instead in that it operates in "very competitive" markets and intends to defend its position.
- Management upped full-year earnings guidance to $4.85-$5.20 per share, from $4.65-$5 per share. Interestingly, the increase wasn't accompanied by higher revenue guidance, which suggests that Caterpillar believes it can continue to squeeze efficiency from existing operations. Keep watching those margins, Fool.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q1 2006 |
Q1 2005 |
% Change |
|
|---|---|---|---|---|
|
Sales |
$8,724 |
$9,392 |
$8,339 |
12.6 |
|
Net Profit |
-- |
$840 |
$581 |
44.6 |
|
EPS |
$1.05 |
$1.20 |
$0.81 |
48.1 |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q1 2006 |
Q1 2005 |
%Change |
|
|---|---|---|---|
|
Gross Margin |
30.24% |
25.47% |
4.77 |
|
Op. Margin |
12.97% |
9.07% |
3.90 |
|
Net Margin |
8.94% |
6.97% |
1.98 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q1 2006 |
Q1 2005 |
% Change |
|---|---|---|---|
|
Cash+ ST Invest. |
$806 |
$517 |
55.9 |
|
Inventory |
$5,858 |
$5,230 |
12 |
|
Total Receivables |
$25,990 |
$23,785 |
9.3 |
|
Liabilities |
Q1 2006 |
Q1 2005 |
% Change |
|---|---|---|---|
|
Total Debt |
$25,868 |
$24,434 |
5.9 |
|
Accounts Pay. |
$3,661 |
$3,978 |
(8) |
Learn the ways of the balance sheet.
Cash Flow Checkup
|
Q1 2006 |
Q1 2005 |
% Change |
|
|---|---|---|---|
|
Cash From Ops |
$527 |
$179 |
194.4 |
|
Capital Expend. |
$233 |
$165 |
41.2 |
|
Free Cash Flow |
$294 |
$14 |
2000 |
Find out why Fools always follow the money.
Related Companies:
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CIT Group
(NYSE:CIT) -
CNH
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Cummins
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DaimlerChrysler
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Deere & Co.
(NYSE:DE) -
Kubota
(NYSE:KUB)
Related Foolishness:
- Find out whether our Foolish forecast was on target.
- Caterpillar was purring in the first quarter, too.
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
Fool contributor Tim Beyers didn't own shares in any of the companies mentioned in this story at the time of publication. You can find out what's in his portfolio by checking Tim's Fool profile. The Motley Fool has an ironclad disclosure policy.
