Caterpillar (CAT) Expected to Beat Earnings Estimates: Should You Buy?

Core Viewpoint - The market anticipates a year-over-year decline in Caterpillar's earnings due to lower revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - Caterpillar is expected to report quarterly earnings of $4.30 per share, reflecting a year-over-year decrease of 23.2% [3]. - Revenue projections stand at $14.54 billion, which is an 8% decline from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 2.32% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Caterpillar is higher than the Zacks Consensus Estimate, leading to a positive Earnings ESP of +0.16% [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive reading indicates a likely earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [8]. - Caterpillar currently holds a Zacks Rank of 3, suggesting a potential to beat the consensus EPS estimate [11]. Historical Performance - In the last reported quarter, Caterpillar exceeded the expected earnings of $4.97 per share, achieving $5.14, resulting in a surprise of +3.42% [12]. - Over the past four quarters, the company has surpassed consensus EPS estimates three times [13]. Conclusion - While an earnings beat may influence stock movement, other factors can also play a significant role in stock performance [14]. - Caterpillar is viewed as a strong candidate for an earnings beat, but investors should consider additional factors before making investment decisions [16].