Did You See Caterpillar's Latest April Sales Number?

In a report published Thursday, Raymond James analysts maintained their Market Perform rating on Caterpillar Inc. CAT. The company reported growth in its April retail statistics, despite mixed markets.

The company reported a 12 percent, year-on-year, decline in sales associated with the Construction Industries, with a large part of the decline being contributed by Latin America and the Asia/Pacific region. North America, however, saw a 3 percent year-on-year increase in sales, with robust residential construction driving growth. U.S. housing starts were at the highest level in April in more than seven years.

"In Latin America, weak end markets in Brazil in particular and the absence of a large government order were the main causes of the decline. Other commodity exposed countries in the region were also a drag," the analysts explained.

The company guided to 5-10 percent decline in sales in the Construction Industries for 2015.

Although the Resources Industries segment reported a 8 percent year-on-year decline, the analysts said that this was the first quarter when this segment did not report a double-digit decline ever since the company started reporting the figures for Resources Industries separately. Here too, North America witnessed growth of 6 percent.

According to the Raymond James report, "Overall, however, mining orders continue to be depressed and the aftermarket business has yet to show signs of improvement in this oversupplied market."

Energy & Transportation reported an 8 percent decline. The analysts expect both segments to continue to report declines through the remainder of the year. The strong Q1 results were driven by the shipping of backlog in the two segments.

"While CAT is likely seeing a bottoming in some key end markets and continues to focus on factors within its control (i.e. its balance sheet, lean, restructuring) a lack of catalysts keep us neutral on the name in the near-term," the analysts added.