The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Caterpillar met expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share dropped significantly.
Margins shrank across the board.
Caterpillar chalked up revenue of $16.08 billion. The 12 analysts polled by S&P Capital IQ wanted to see revenue of $16.20 billion on the same basis. GAAP reported sales were 6.8% lower than the prior-year quarter's $17.24 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.46. The 21 earnings estimates compiled by S&P Capital IQ predicted $1.71 per share. GAAP EPS of $1.04 for Q4 were 55% lower than the prior-year quarter's $2.32 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 24.7%, 10 basis points worse than the prior-year quarter. Operating margin was 10.1%, 120 basis points worse than the prior-year quarter. Net margin was 4.3%, 470 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $15.06 billion. On the bottom line, the average EPS estimate is $1.87.
Next year's average estimate for revenue is $65.21 billion. The average EPS estimate is $8.60.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Caterpillar is outperform, with an average price target of $97.98.
Can your portfolio provide you with enough income to last through retirement? You'll need more than Caterpillar. Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks." Click here for instant access to this free report.
- Add Caterpillar to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.