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It's Showtime for Caterpillar

By Seth Jayson – Updated Apr 10, 2017 at 1:52PM

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Checking expectations

Caterpillar (NYSE: CAT) is expected to report Q1 earnings on April 22. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Caterpillar's revenues will drop -13.5% and EPS will compress -40.5%.

The average estimate for revenue is $13.83 billion. On the bottom line, the average EPS estimate is $1.41.

Revenue details
Last quarter, Caterpillar reported revenue of $16.08 billion. 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 details
Last quarter, non-GAAP EPS came in at $1.46. 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.

Recent performance
For the preceding quarter, gross margin was 24.7%, 10 basis points worse than the prior-year quarter. Operating margin was 8.3%, 310 basis points worse than the prior-year quarter. Net margin was 4.3%, 470 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $63.21 billion. The average EPS estimate is $7.74.

Investor sentiment

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.

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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. 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.

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