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Caterpillar Volumes Keep Sliding: Is It Time for Investors to Worry?
ZACKS· 2025-06-09 14:16
Core Insights - Caterpillar Inc. (CAT) is experiencing significant volume challenges, marking six consecutive quarters of decline, particularly in its Construction Industries segment [2][9] - The decline in total volume for CAT was $3.5 billion in 2024 and $1.1 billion in Q1 2025, primarily due to weak demand and dealer inventory drawdowns [3][9] - Broader macroeconomic uncertainties and global trade policy concerns are negatively impacting demand prospects, with the U.S. manufacturing sector contracting for three consecutive months [4][9] Financial Performance - CAT's revenues have declined for five consecutive quarters, and earnings have fallen in the last three quarters [4][9] - The Zacks Consensus Estimate indicates a year-over-year decline of 14.6% in earnings for 2025 and a 2.4% drop in revenues [12] Industry Comparison - Industry peers such as Terex Corporation and Komatsu Ltd. are also facing similar volume declines, with Terex experiencing five straight quarters of negative organic growth [6][7] - Komatsu's Construction, Mining & Utility Equipment segment has seen volume declines, while its Industrial Machinery & Others division has shown growth due to strong demand in specific sectors [7] Market Performance - CAT shares have lost 2.9% year-to-date, underperforming the industry average growth of 1.9% [8][10] - The current forward 12-month price/earnings (P/E) ratio for CAT is 17.90X, compared to the industry average of 17.06X, indicating that CAT stock does not present a compelling value proposition at current levels [10]
Columbia Sportswear Stock Plunges Despite Q1 Earnings Beat
ZACKS· 2025-05-02 13:35
Columbia Sportswear Company (COLM) reported impressive first-quarter 2025 results, wherein both the top and bottom lines increased year over year. Also, both sales and earnings beat the Zacks Consensus Estimate.The company exceeded first-quarter expectations with strong international growth, especially in Asia, while U.S. sales declined slightly. It is navigating significant uncertainty due to the newly imposed U.S. tariffs, prompting a withdrawal of full-year guidance. As a result, shares of this company d ...
Skechers Stock Declines Despite Reporting Earnings Beat in Q1
ZACKS· 2025-04-25 12:25
Skechers U.S.A., Inc. (SKX) reported first-quarter 2025 results, wherein the top line missed the Zacks Consensus Estimate but the bottom line surpassed the same. While both metrics showed year-over-year growth, the company withdrew its full-year guidance due to ongoing economic uncertainty related to global trade policies. As a result, shares of this Manhattan Beach, CA-based footwear company declined 6.5% in the after-hours trading session yesterday.The company’s first-quarter results were driven by strong ...