Caterpillar (CAT) Results Negative for Other Mining Stocks (JOY)
Get Alerts CAT Hot Sheet
Price: $338.00 -7.02%
Rating Summary:
18 Buy, 21 Hold, 5 Sell
Rating Trend: Down
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Rating Summary:
18 Buy, 21 Hold, 5 Sell
Rating Trend: Down
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Join SI Premium – FREE
On Tuesday morning Caterpillar, Inc. (NYSE: CAT) reported Q2 EPS of $1.45, $0.26 worse than the analyst estimate of $1.71. Revenue for the quarter came in at $14.62 billion versus the consensus estimate of $15.03 billion. Looking ahead, Caterpillar sees FY13 EPS of $6.50, versus prior guidance of $7 and the consensus of $6.84. The Company also sees FY13 revenue of $56 to $58 billion, versus prior guidance of $57 to $61 billion and the consensus of $58.67 billion.
Wells Fargo analyst Andrew Casey thinks results are negative for other mining equipment companies.
"Looking forward, we continue to anticipate CAT's earnings power will be constrained by slow global growth," said Casey. "We think the stock contained low expectations going into Q2 2013 and most investors seemed to anticipate the cut in 2013 guidance."
"Given views about bottoming markets against anticipated exhaustion of dealer destocking during H2 2013, the stock may enjoy a relief rally. CAT suggested some of its end markets may be bottoming with a low likelihood that dealer destocking continues into 2014. In our view, negative read-through: short-term for other mining equipment companies," he added.
Shares of Caterpillar are trading lower following results. Joy Global, Inc. (NYSE: JOY) is also trading lower.
Wells Fargo has a Market Perform rating on Caterpillar.
For an analyst ratings summary and ratings history on Caterpillar (NYSE: CAT) click here. For more ratings news on Caterpillar click here.
Shares of Caterpillar closed at $85.52 yesterday.
Wells Fargo analyst Andrew Casey thinks results are negative for other mining equipment companies.
"Looking forward, we continue to anticipate CAT's earnings power will be constrained by slow global growth," said Casey. "We think the stock contained low expectations going into Q2 2013 and most investors seemed to anticipate the cut in 2013 guidance."
"Given views about bottoming markets against anticipated exhaustion of dealer destocking during H2 2013, the stock may enjoy a relief rally. CAT suggested some of its end markets may be bottoming with a low likelihood that dealer destocking continues into 2014. In our view, negative read-through: short-term for other mining equipment companies," he added.
Shares of Caterpillar are trading lower following results. Joy Global, Inc. (NYSE: JOY) is also trading lower.
Wells Fargo has a Market Perform rating on Caterpillar.
For an analyst ratings summary and ratings history on Caterpillar (NYSE: CAT) click here. For more ratings news on Caterpillar click here.
Shares of Caterpillar closed at $85.52 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Gilead Sciences (GILD) Misses Q1 EPS by 288c
- META to capture largest share of users, SNAP to benefit from ad budget shifts - Canaccord Genuity weighs in on TikTok ban
- South Plains Financial Inc. (SPFI) Tops Q1 EPS by 6c
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS ViewRelated Entities
Earnings, Wells FargoSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!