Industrials

Caterpillar Q1 Estimates Far Below Consensus

Paul Ausick

Published: March 17, 2016 7:35 am

Last Updated: January 13, 2020 11:51 am

In a filing Thursday morning with the U.S. Securities and Exchange Commission (SEC), Caterpillar Inc. (NYSE: CAT) said that its first-quarter earnings and revenues will fall well short of current consensus estimates of earnings per share (EPS) of $0.97 and revenues of $10.36 billion.

The heavy equipment maker said adjusted EPS will fall in a range of $0.65 to $0.70. On a GAAP basis, EPS is pegged at $0.50 to $0.55. Revenues are forecast in a range of $9.3 billion to $9.4 billion.

The company also said it was “comfortable” with its current full-year guidance that calls for revenues of $40 to $44 billion and adjusted EPS of $4.00.

In a presentation due to be delivered Thursday at the Bank of America Merrill Lynch Industrials Conference, full-year sales are seen down in each of its three divisions, with Construction Industries revenues off 5% to 10%, Energy & Transportation down 10% to 15% and Resource Industries revenues off 15% to 20%. Caterpillar attributes the drop to macroeconomic headwinds: an uncertain global economy, especially in China and Brazil; continued weak demand for construction equipment; poor demand in the oil and gas sector; low commodity prices in the mining business; and a strong dollar.

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