Jefferies Group Weighs in on Caterpillar Inc.’s FY2018 Earnings (CAT)

Caterpillar Inc. (NYSE:CAT) – Research analysts at Jefferies Group raised their FY2018 earnings estimates for shares of Caterpillar in a research note issued to investors on Thursday. Jefferies Group analyst S. Volkmann now forecasts that the industrial products company will earn $8.25 per share for the year, up from their previous estimate of $7.85. Jefferies Group also issued estimates for Caterpillar’s FY2019 earnings at $9.00 EPS.

Caterpillar (NYSE:CAT) last announced its quarterly earnings results on Tuesday, October 24th. The industrial products company reported $1.95 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $1.27 by $0.68. The business had revenue of $11.41 billion during the quarter, compared to analysts’ expectations of $10.69 billion. Caterpillar had a net margin of 2.09% and a return on equity of 23.22%. The firm’s revenue for the quarter was up 24.6% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.85 EPS.

Several other equities research analysts have also recently commented on CAT. Citigroup reaffirmed a “neutral” rating and issued a $185.00 target price (up from $160.00) on shares of Caterpillar in a research report on Friday. Credit Suisse Group raised their target price on shares of Caterpillar from $155.00 to $192.00 and gave the stock an “outperform” rating in a research report on Friday. Berenberg Bank began coverage on shares of Caterpillar in a research report on Thursday. They issued a “buy” rating and a $200.00 target price for the company. Wells Fargo & Co raised their target price on shares of Caterpillar from $160.00 to $200.00 and gave the stock an “outperform” rating in a research report on Thursday. Finally, ValuEngine cut shares of Caterpillar from a “buy” rating to a “hold” rating in a research report on Monday, October 2nd. Three analysts have rated the stock with a sell rating, ten have given a hold rating and sixteen have issued a buy rating to the company’s stock. The company presently has a consensus rating of “Hold” and a consensus price target of $156.03.

Caterpillar (NYSE:CAT) traded up $1.58 during trading hours on Friday, hitting $170.41. 5,788,025 shares of the stock traded hands, compared to its average volume of 5,091,059. Caterpillar has a 12-month low of $90.34 and a 12-month high of $173.24. The company has a debt-to-equity ratio of 1.58, a quick ratio of 1.04 and a current ratio of 1.44. The stock has a market cap of $101,380.00, a PE ratio of 118.34, a price-to-earnings-growth ratio of 2.08 and a beta of 1.29.

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, February 20th. Shareholders of record on Monday, January 22nd will be paid a dividend of $0.78 per share. The ex-dividend date of this dividend is Friday, January 19th. This represents a $3.12 dividend on an annualized basis and a yield of 1.83%. Caterpillar’s dividend payout ratio is currently 216.67%.

In other news, insider Thomas A. Pellette sold 24,547 shares of the firm’s stock in a transaction dated Friday, November 17th. The shares were sold at an average price of $135.69, for a total transaction of $3,330,782.43. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, insider Lange Bob De sold 1,572 shares of the firm’s stock in a transaction dated Thursday, October 26th. The shares were sold at an average price of $137.58, for a total transaction of $216,275.76. Following the sale, the insider now directly owns 11,096 shares in the company, valued at approximately $1,526,587.68. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 52,989 shares of company stock valued at $7,235,850. 0.14% of the stock is owned by company insiders.

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Quadrant Capital Group LLC boosted its holdings in shares of Caterpillar by 10.6% in the second quarter. Quadrant Capital Group LLC now owns 1,339 shares of the industrial products company’s stock worth $102,000 after buying an additional 128 shares during the last quarter. Motco boosted its holdings in shares of Caterpillar by 264.9% in the second quarter. Motco now owns 989 shares of the industrial products company’s stock worth $106,000 after buying an additional 718 shares during the last quarter. Acrospire Investment Management LLC boosted its holdings in shares of Caterpillar by 900.0% in the second quarter. Acrospire Investment Management LLC now owns 1,000 shares of the industrial products company’s stock worth $107,000 after buying an additional 900 shares during the last quarter. Blue Chip Partners Inc. purchased a new position in shares of Caterpillar in the second quarter worth approximately $136,000. Finally, Hanson McClain Inc. boosted its holdings in shares of Caterpillar by 81.1% in the second quarter. Hanson McClain Inc. now owns 1,313 shares of the industrial products company’s stock worth $141,000 after buying an additional 588 shares during the last quarter. 68.55% of the stock is currently owned by hedge funds and other institutional investors.

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Caterpillar Company Profile

Caterpillar Inc is a manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The Company operates through segments, including Construction Industries, which is engaged in supporting customers using machinery in infrastructure, forestry and building construction; Resource Industries, which is engaged in supporting customers using machinery in mining, quarry, waste and material handling applications; Energy & Transportation, which supports customers in oil and gas, power generation, marine, rail and industrial applications, including Cat machines; Financial Products segment, which provides financing and related services, and All Other operating segments, which includes activities, such as product management and development, and manufacturing of filters and fluids, undercarriage, tires and rims, ground engaging tools, fluid transfer products, and sealing and connecting components for Cat products.

Earnings History and Estimates for Caterpillar (NYSE:CAT)

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