The 10-second takeaway
For the quarter ended June 30 (Q2), Caterpillar missed slightly on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly. GAAP earnings per share contracted significantly.
Margins contracted across the board.
Caterpillar booked revenue of $14.62 billion. The 14 analysts polled by S&P Capital IQ hoped for sales of $14.86 billion on the same basis. GAAP reported sales were 16% lower than the prior-year quarter's $17.37 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 $1.45. The 19 earnings estimates compiled by S&P Capital IQ predicted $1.70 per share. GAAP EPS of $1.45 for Q2 were 43% lower than the prior-year quarter's $2.54 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 25.1%, 310 basis points worse than the prior-year quarter. Operating margin was 10.6%, 480 basis points worse than the prior-year quarter. Net margin was 6.6%, 320 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $15.31 billion. On the bottom line, the average EPS estimate is $1.92.
Next year's average estimate for revenue is $58.58 billion. The average EPS estimate is $6.84.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Caterpillar is outperform, with an average price target of $96.38.
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