Caterpillar Earnings: What Investors Should Watch

Caterpillar (NYSE:CAT) will report earnings before markets open on Wednesday, July 24th. Caterpillar Inc. designs, manufactures, and markets construction, mining, agricultural, and forestry machinery. The Company also manufactures engines and other related parts for its equipment, and offers financing and insurance. Caterpillar distributes its products through a worldwide organization of dealers.

Here is your Cheat Sheet to Caterpillar Earnings:

Earnings Expectations: Analysts expect earnings of $1.70 per share on revenues of $14.97 billion. Currently, the company’s P/E ratio stands at 11.68.

Analyst Trends:

Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $2.14 to a profit $1.92. For the current year, the average estimate is a profit of $6.84, which is worse than the estimate ninety days ago.

Earnings Trends:

Here’s how Caterpillar has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 51,324 32,396 42,588 60,138 65,875
Diluted EPS ($) 5.66 1.43 4.15 7.40 8.48

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012 Mar. 31, 2013
Revenue ($) in millions 17,374.00 16,445.00 16,075.00 13,210.00
Diluted EPS ($) 2.54 2.54 1.04 1.31

Past Performance:
Caterpillar has beat analyst estimates 2 times in the past four quarters. This is not consistent enough to get bullish yet.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]