This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Caterpillar Analysis: Dow Earnings

BOSTON ( TheStreet) -- Caterpillar (CAT - Get Report) has reported quarterly results.

Quarterly Synopsis: Cat's fourth-quarter sales surged 62% to nearly $13 billion and profit more than quadrupled to $968 million, or $1.47 a share. Machinery and engines cash flow rose to an all-time record, helped by strong demand in emerging markets. During the fourth quarter, machinery and engine sales soared 69% as financial products revenue dropped 6% year-over-year. For the full-year 2010, Caterpillar's stock was the best-performing of the 30 Dow components. It is up 81% in 12 months. Cat recorded $4.15 of profit per share in 2010 and is forecasting $6 a share of profit in 2011 on $50 billion of sales, representing 16% potential top-line growth.

Earnings Performance: Cat delivered adjusted fourth-quarter earnings of $1.47, representing 259% year-over-year growth and exceeding Wall Street's consensus forecast by 14%. The company has an average earnings beat rate of 117% and has now trumped expectations in eight consecutive quarters. Its stock rose modestly on the announcement. Cat's top-line, up 62% year-over-year, outperformed analysts' expectation by nearly 11%. By comparison, the company has an average sales beat rate of 5.3%. It has exceeded estimates for three quarters.

Dividend Information: Cat pays a quarterly dividend of 44 cents, converting to an annual yield of 1.8%, low for a Dow stock. But, it has boosted the distribution 3.6% in the past 12 months and 8% and 13% annually, on average, over three- and five-year periods.

Analyst Opinions: Of researchers following Cat, 12 advise buying its stock and nine recommend holding it. None suggest selling. The stock has a median target of $106.93.

Macquarie, Outperform, $115 Target
Credit Suisse, Outperform, $110 Target
Jefferies, Buy, $110 Target
RBC Capital, Outperform, $108 Target
Citigroup, Hold, $100 Target
UBS, Neutral, $93 Target
Blockbuster Timeline
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
CAT $77.69 -1.30%
AAPL $95.03 -2.90%
FB $116.73 7.20%
GOOG $691.02 -2.10%
TSLA $247.54 -1.60%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs