Core Viewpoint - Caterpillar's stock performance is influenced by earnings estimates and revenue growth, with current trends indicating potential challenges in the near term [2][5][10]. Earnings Estimates - For the current quarter, Caterpillar is expected to report earnings of $4.66 per share, reflecting a decrease of -9.9% year-over-year, with a consensus estimate change of -2.3% over the last 30 days [5]. - The consensus earnings estimate for the current fiscal year is $18.24, indicating a decline of -16.7% from the previous year, with a recent change of -3% [5]. - For the next fiscal year, the earnings estimate is $21.27, suggesting an increase of +16.6% compared to the prior year, with a slight change of -0.5% recently [6]. Revenue Growth - The consensus sales estimate for the current quarter is $16.6 billion, representing a year-over-year increase of +3.1% [11]. - For the current fiscal year, the revenue estimate is $64.5 billion, indicating a slight decline of -0.5%, while the next fiscal year's estimate of $68.44 billion reflects a growth of +6.1% [11]. Recent Performance - In the last reported quarter, Caterpillar achieved revenues of $16.57 billion, a decrease of -0.7% year-over-year, and an EPS of $4.72, down from $5.99 a year ago [12]. - The company surpassed revenue estimates once in the last four quarters, while it exceeded EPS estimates only once during the same period [13]. Valuation - Caterpillar's valuation is assessed using various multiples, with a Zacks Value Style Score of C, indicating that the stock is trading at par with its peers [17].

Financial Performance - Hyster-Yale reported a quarterly loss of $0.14 per share, missing the Zacks Consensus Estimate of $0.26, and a significant decline from earnings of $3.58 per share a year ago, representing an earnings surprise of -153.85% [1] - The company posted revenues of $956.6 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.10%, but down from $1.17 billion in the same quarter last year [2] - Over the last four quarters, Hyster-Yale has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Performance - Hyster-Yale shares have declined approximately 18.8% since the beginning of the year, contrasting with the S&P 500's gain of 7.6% [3] - The current Zacks Rank for Hyster-Yale is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.33 on revenues of $897.91 million, and for the current fiscal year, it is $1.54 on revenues of $3.69 billion [7] - The estimate revisions trend for Hyster-Yale was mixed ahead of the earnings release, and future changes in estimates will be closely monitored [6][7] Industry Context - Hyster-Yale operates within the Manufacturing - Construction and Mining industry, which is currently ranked in the bottom 18% of over 250 Zacks industries, indicating potential challenges ahead [8]

This quarterly report represents an earnings surprise of -3.28%. A quarter ago, it was expected that this construction equipment company would post earnings of $4.3 per share when it actually produced earnings of $4.25, delivering a surprise of -1.16%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Caterpillar, which belongs to the Zacks Manufacturing - Construction and Mining industry, posted revenues of $16.57 billion for the quarter ended June 2025, surpassing t ...

Company Performance - Terex reported quarterly earnings of $1.49 per share, exceeding the Zacks Consensus Estimate of $1.44 per share, but down from $2.16 per share a year ago, representing an earnings surprise of +3.47% [1] - The company posted revenues of $1.49 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.23% and up from $1.38 billion year-over-year [2] - Over the last four quarters, Terex has consistently surpassed consensus EPS estimates and revenue estimates [2] Future Outlook - The sustainability of Terex's stock price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $1.43 on revenues of $1.4 billion, and for the current fiscal year, it is $4.72 on revenues of $5.37 billion [7] - The estimate revisions trend for Terex was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Manufacturing - Construction and Mining industry, to which Terex belongs, is currently in the top 39% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Terex's performance [5]

Company Performance - Caterpillar (CAT) closed at $417.19, with a daily increase of +1.74%, outperforming the S&P 500's gain of 0.06% [1] - Over the past month, CAT shares have appreciated by 11.97%, exceeding the Industrial Products sector's gain of 6.94% and the S&P 500's gain of 5.88% [1] Upcoming Earnings - The upcoming earnings release is expected to show an EPS of $4.88, reflecting an 18.53% decline compared to the same quarter last year [2] - Revenue is anticipated to be $16.36 billion, indicating a 2% decrease from the same quarter of the previous year [2] Full Year Estimates - For the full year, earnings are projected at $18.79 per share and revenue at $63.23 billion, representing changes of -14.2% and -2.44% respectively from the previous year [3] - Recent adjustments to analyst estimates are crucial as they indicate the evolving nature of business trends [3] Zacks Rank and Performance - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has shown that 1 stocks have generated an average annual return of +25% since 1988 [5] - Currently, Caterpillar holds a Zacks Rank of 3 (Hold) [5] Valuation Metrics - Caterpillar's Forward P/E ratio is 21.83, which aligns with its industry's Forward P/E of 21.83 [6] - The PEG ratio for CAT is 2.72, compared to the Manufacturing - Construction and Mining industry's average PEG ratio of 5.06 [6] Industry Overview - The Manufacturing - Construction and Mining industry is part of the Industrial Products sector and holds a Zacks Industry Rank of 97, placing it in the top 40% of over 250 industries [7] - Top-rated industries, as per the Zacks Industry Rank, tend to outperform lower-rated industries by a factor of 2 to 1 [7]

Company Performance - Hyster-Yale's stock closed at $42.27, reflecting a 2.2% increase from the previous trading session, outperforming the S&P 500's gain of 0.48% [1] - The stock has seen a slight increase of 0.07% over the past month, which is below the Industrial Products sector's gain of 6.87% and the S&P 500's gain of 5.13% [1] Earnings Projections - The upcoming EPS for Hyster-Yale is projected at $0.07, indicating a significant drop of 98.04% compared to the same quarter last year [2] - The Zacks Consensus Estimate for revenue is expected to be $936.9 million, down 19.79% from the previous year [2] Annual Forecast - For the entire year, the Zacks Consensus Estimates forecast earnings of $1.36 per share and revenue of $3.69 billion, representing declines of 84.86% and 14.29% respectively compared to the previous year [3] - Recent adjustments to analyst estimates are crucial as they reflect changing business trends, with positive revisions indicating analyst optimism [3] Valuation Metrics - Hyster-Yale has a Forward P/E ratio of 30.41, which is a premium compared to the industry average Forward P/E of 16.43 [6] - The Manufacturing - Construction and Mining industry, part of the Industrial Products sector, currently holds a Zacks Industry Rank of 208, placing it in the bottom 16% of over 250 industries [6] Zacks Rank System - Hyster-Yale currently holds a Zacks Rank of 3 (Hold), with the consensus EPS estimate remaining unchanged over the last 30 days [5] - The Zacks Rank system has a strong track record, with stocks rated 1 producing an average annual return of +25% since 1988 [5]

Core Insights - Caterpillar Inc. (CAT) shares have increased by 9.5% over the past three months, outperforming the manufacturing-construction and mining industry's growth of 9.2% [1] - The company has announced a 7% increase in its quarterly dividend to $1.51 per share, marking the 31st consecutive year of dividend increases, resulting in a yield of 1.63% [3][4] - The Energy and Transportation (E&T) segment has shown improved profits, offsetting declines in the Construction and Resource Industries segments due to weaker demand [5] Financial Performance - Caterpillar's revenue is projected to range from $42 billion to $72 billion, with margins expected between 10% and 22% [6] - The company has a payout ratio of 26.91%, above the industry average of 26.31%, indicating a strong commitment to shareholder returns [4] - The Zacks Consensus Estimate for CAT's 2025 earnings indicates a year-over-year decline of 14.6%, while estimates for 2026 suggest a recovery with 12.8% growth [12][15] Market Position and Valuation - Caterpillar's return on equity (ROE) stands at 53.77%, surpassing the industry average of 53.08% and the S&P 500's 32% [16] - The stock is currently trading at a forward P/E ratio of 18.71X, higher than the industry average of 17.79X, indicating a premium valuation [17][19] - Despite the premium valuation, the company is expected to benefit from infrastructure spending and energy-transition trends, supporting long-term demand [20] Growth Drivers - The U.S. Infrastructure Investment and Jobs Act is anticipated to drive a surge in construction projects, increasing equipment demand [10] - The global transition toward clean energy is creating a stronger need for critical minerals, supporting long-term demand for Caterpillar's mining equipment [10] - Caterpillar is capitalizing on the growth of data centers driven by generative AI, with strong demand for its reciprocating engines [11]

Company Performance - Caterpillar (CAT) closed at $357.68, down 1.31% from the previous trading session, underperforming the S&P 500's loss of 0.84% [1] - Over the past month, Caterpillar's shares have appreciated by 2.51%, outperforming the Industrial Products sector's flat performance and the S&P 500's gain of 1.44% [1] Upcoming Earnings - The upcoming EPS for Caterpillar is projected at $4.89, indicating an 18.36% decline compared to the same quarter last year [2] - Quarterly revenue is expected to be $16.42 billion, down 1.59% from the previous year [2] Annual Estimates - For the annual period, earnings are anticipated at $18.7 per share and revenue at $63.25 billion, reflecting declines of 14.61% and 2.41% respectively from last year [3] - Recent revisions to analyst forecasts are important as they indicate evolving short-term business trends [3] Zacks Rank and Valuation - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks Caterpillar at 3 (Hold) [5] - Caterpillar has a Forward P/E ratio of 19.38, which is a premium compared to the industry average of 15.1 [6] Industry Context - The Manufacturing - Construction and Mining industry, part of the Industrial Products sector, has a Zacks Industry Rank of 193, placing it in the bottom 22% of over 250 industries [8] - The average PEG ratio for Caterpillar is 2.41, while the industry average is 4.93 [7]

Core Insights - Caterpillar (CAT) has announced a 7% increase in its quarterly dividend to $1.51 per share, marking the 31st consecutive year of dividend increases, demonstrating resilience amid near-term challenges [1][3][11] Dividend Performance - The annualized dividend of $6.04 results in a yield of 1.69%, which exceeds the manufacturing - construction and mining industry's yield of 1.58%, the sector's yield of 1.47%, and the S&P 500's yield of 1.24% [2] - Caterpillar's payout ratio stands at 26.91%, higher than the industry's 23.61% [2] Financial Context - The dividend increase follows a weaker-than-expected first-quarter 2025 performance, with declines in both revenues and earnings due to softer volumes [3] - Despite the challenges, the increase reflects management's confidence in the company's long-term cash-generating capacity [3][7] Historical Dividend Trends - Caterpillar has consistently paid cash dividends since its formation and has been a member of the S&P 500 Dividend Aristocrats Index since 2019 [4] - Over the past five years, the company's dividend has grown at approximately 8%, supported by nearly doubling its free cash flow [5] Shareholder Returns - In 2024, Caterpillar returned around $10.3 billion to shareholders through dividends and share repurchases, with an additional $4.3 billion returned in the first quarter of 2025 [5][11] - The company aims to return substantially all Machinery, Energy & Transportation (ME&T) free cash flow to shareholders over time [6] Market Position and Outlook - The recent dividend hike enhances investor confidence in Caterpillar's long-term growth outlook, supported by ongoing technological innovation and expected recovery in end-market demand [7] - Caterpillar's stock has experienced a decline of 1.6% year-to-date, compared to the industry's 1.1% growth and the S&P 500's gain of 1.5% [12] Valuation Metrics - Caterpillar is currently trading at a forward 12-month price/earnings (P/E) ratio of 18.04X, below the industry average of 19.86X [13] - The Zacks Consensus Estimate indicates a year-over-year decline of 14.6% in earnings for 2025, with a revenue drop of 2.4% expected [14]

Core Viewpoint - Caterpillar Inc. and Komatsu Ltd. are leading manufacturers in the construction and mining equipment sector, with Caterpillar holding a significant market capitalization advantage over Komatsu [1][2][3]. Group 1: Company Performance - Caterpillar has experienced revenue declines for five consecutive quarters, with a notable 9.8% drop in Q1 2025, marking its sharpest decline in this period [4]. - The earnings for Caterpillar fell by 24.1% in the same quarter, indicating a more severe downturn compared to previous quarters [4]. - Komatsu reported a 6.2% increase in net sales for fiscal 2024, with operating income rising by 8.2% and net income increasing by 11.7% [14]. Group 2: Market Dynamics - Caterpillar's performance has been negatively impacted by declining volumes in its Resource and Construction Industries segments, attributed to reduced customer spending [5]. - Komatsu's sales growth was primarily driven by the depreciation of the Japanese yen and improved selling prices, which helped mitigate lower volumes [14]. - Both companies are closely monitored by investors to assess the health of the manufacturing and infrastructure sectors, especially during economic uncertainty [3]. Group 3: Future Outlook - Caterpillar anticipates flat revenues for 2025, with adjusted operating profit margins expected to remain within the target range, despite potential tariff impacts [9]. - Komatsu expects an 8.8% decline in net sales for fiscal 2025, with significant impacts from U.S. tariffs estimated at 140 billion yen ($976 million) annually [18][19]. - Both companies are focusing on technological innovations and expanding their product portfolios to enhance future growth prospects [20]. Group 4: Valuation and Investment Considerations - Caterpillar's stock has declined by 3.6% year-to-date, while Komatsu's stock has gained 8.4%, outperforming various industry benchmarks [26]. - Caterpillar is trading at a forward earnings multiple of 17.62, which is higher than its five-year median, while Komatsu is at 10.22, lower than its five-year median [28]. - The dividend yield for Caterpillar is 1.61%, compared to Komatsu's 2.83%, indicating a more attractive yield for Komatsu [31]. Group 5: Analyst Sentiment - Caterpillar's downward estimate revisions suggest negative analyst sentiment, while Komatsu's estimates have been trending upward [34][35]. - Both companies currently hold a Zacks Rank of 3 (Hold), making the decision between the two stocks challenging for investors [35].