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Caterpillar Dips 4% on Revenue Miss, Cowen Says Results Are Not as Bad as it Seems

Stock Markets Aug 02, 2022 09:42
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By Senad Karaahmetovic

Shares of Caterpillar (NYSE:CAT) have opened over 4% lower today after the company delivered weaker-than-expected second-quarter sales.

Caterpillar reported an adjusted EPS of $3.18 to beat the consensus of $3.03. However, revenue came in at $14.25 billion, which is below the consensus of $14.37 billion, after the company’s biggest segment, Machinery, Energy & Transportation, also missed the consensus despite rising 11% year-over-year.

Caterpillar “anticipates 3Q sales to increase from higher sales to users and price realization,” it said in a press release. The company also expects its adjusted operating profit margin to improve in the second half of 2022.

“Our second-quarter results reflect healthy demand across most of our end markets. We remain focused on executing our strategy for long-term profitable growth,” the CEO said in remarks to investors.

A Goldman Sachs analyst said the results delivered by CAT were “mixed.” The analyst has a Buy rating and a $252 per share price target on CAT shares.

A Cowen analyst said the results were “not as bad as it seems.” The analyst is positive about Caterpillar reporting higher service volumes and the highest price realization in more than two years.

Caterpillar Dips 4% on Revenue Miss, Cowen Says Results Are Not as Bad as it Seems
 

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