Earnings Preview: Caterpillar & How To Trade It (CAT, DE, JOYG, CNH)
Caterpillar (NYSE: CAT) is set to report earnings tomorrow morning, and the whole world will be watching "Big Cat," as its excavators, cranes, and bulldozers are used throughout the world.
Caterpillar has seen a boon for its products, as emerging markets, and developed nations alike clamor for its products. Even here in the U.S., Caterpillar is seeing record demand for its products, particularly in construction and mining.
Caterpillar said that it saw such strong demand for mining equipment that it outright purchased Bucyrus (NASDAQ: BUCY), and this deal is expected to close relatively shortly, giving Caterpillar additional exposure to mining equipment in its portfolio.
If Caterpillar is able to surpass earnings estimates of $1.31 per share on $11.52 billion in sales, then names like Deere (NYSE: DE), Joy Global (NASDAQ: JOYG) and Case-New Holland (NYSE: CNH) should perform well also. Revenues are expected to jump nearly 40% from last year, and the guidance is expected to come in at $1.64 per share on revenues of $13.21 billion.
Currently, shares of Caterpillar trade at 13.5 times forward earnings, and sport a 1.5% dividend yield to boot.
Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide.
