Caterpillar (CAT) Results Negative for Other Mining Stocks (JOY)
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, with a 52 week range of $78.79-$99.70.
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, with a 52 week range of $78.79-$99.70.