Caterpillar

The following is a summary of the Caterpillar Inc. (CAT) Q4 2023 Earnings Call Transcript: Financial Performance: Caterpillar reported a 13% increase in total sales and revenues reaching $67.1 billion in 2023, with Q4 accounting for $17.1 billion. Caterpillar posted an adjusted operating profit of $13.7 billion in 2023, a 51% surge over the previous year. Adjusted operating profit margin for 2023 was 20.5%, up 510 basis points compared to 2022. Caterpillar’s adjusted profit per share rose 53% to $21.21 in 2023, compared to 2022. The company generated $10 billion of ME&T free cash flow, surpassing its target range by over $2 billion. Caterpillar increased its ME&T free cash flow target range to $5 billion to $10 billion, from $4 billion to $8 billion. Business Progress: Caterpillar’s services revenue hit $23 billion in 2023, up 5% compared to 2022. Energy & Transportation and Construction Industries sales saw a significant increase […]

Caterpillar (CAT) delivered higher fourth-quarter results on a yearly basis with earnings surpassing market expectations, aided by double-digit growth in its energy and transportation business. The heavy equipment manufacturer on Monday reported adjusted earnings of $5.23 a share for the December quarter, up from $3.86 the year before, and ahead of the Capital IQ-polled consensus of $4.75. Sales and revenue increased 3% to $17.07 billion, but were just shy of the Street’s view for $17.13 billion. Shares of the company jumped 4.6% in premarket trading. Caterpillar posted “record full-year sales and revenues, record adjusted profit per share and record (machinery, energy and transportation) free cash flow,” Chief Executive Jim Umpleby said in a statement. “We remain committed to serving our customers, executing our strategy and investing for long-term profitable growth.” Machinery, energy and transportation revenue grew 2% to $16.24 billion. Energy and transportation climbed 12% to $7.67 billion, mainly due

Caterpillar CEO Says Overall Demand Remains Healthy Across Most Of Our End Markets For Our Products And Services; Says In Asia Pacific, Excluding China, We Are Seeing Some Softening In Economic Conditions.

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: Shares are trading higher pre-market following CAT’s Q4 print, with the company beating EPS expectations and providing upbeat guidance for 2024. We lift our price target to $360 from $345, valuing shares at 16.1x our 2025 EPS outlook (initiated at $22.35; 2024 EPS adjusted to $21.41 from $21.15), in line with CAT’s historical forward average. CAT posts Q4 operating EPS of $5.23 vs. $3.86 (+35% Y/Y), surpassing the consensus forecast of $4.75. As expected, Y/Y sales growth cooled into the single-digits (+3%), led by a 12% increase in Energy & Transportation sales. Improved profitability drove earnings expansion during Q4, with adj-operating margins widening to 18.9% (+190 bps) on favorable price realization, manufacturing costs, and absence of a goodwill impairment. CAT’s 2024 outlook implies stabilization of dealer inventories

Caterpillar CFO Says Price Increases Will Exceed Manufacturing Costs For The Year.

Caterpillar dealers cut their inventories by $900 million in 4Q, accounting for much of the sales decline in construction and mining equipment during the quarter. The decrease in inventories follows a $700 million increase in 3Q inventories. Caterpillar says it does not expect a “significant change” in dealer inventories in 2024. Dealers stocked more equipment in recent years because supply-chain problems created long lead times for filling orders. As the company’s factory output improves, dealers are finding they can get equipment faster and need to hold less equipment, CEO Jim Umpleby tells analysts.

Caterpillar sees 2024 demand for construction equipment in North America being driven by continued government spending on roads, bridges and other infrastructure projects. CEO Jim Umpleby says on an analyst call that expects residential construction to “remain healthy relative to historical levels.” Caterpillar says demand for its power-generating engines is getting a lift from big investments in new data centers. Shares up 1.6% at $320.06.

Caterpillar’s (CAT) Q4 earnings may trail market expectations as recent data indicate “fundamental headwinds” not fully reflected in the consensus, UBS Securities said Thursday in a report. The heavy equipment manufacturer is scheduled to report Q4 results Monday with UBS projecting earnings at $4.51 a share, compared with Wall Street’s $4.75 consensus. “URI, Volvo and Komatsu December quarter results leave us with increased conviction in our view that momentum in the business is slowing,” UBS said. “For Q4, we have a cautious fundamental bias into the print, but investors should be prepared for the possibility of short covering post-Q4 results,” given Caterpillar’s crowded short position, the report said. UBS increased its price target on Caterpillar to $240 from $209 and maintained its sell rating. Caterpillar shares rose 1.6% in recent Thursday trading.

Caterpillar (NYSE:CAT) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 01/08/2024 -6.62% Morgan Stanley → $270 Initiates Coverage On → Equal-Weight 12/21/2023 -15.27% Bernstein $216 → $245 Maintains Market Perform 12/19/2023 1.33% Stifel $285 → $293 Maintains Buy 11/20/2023 -13.54% HSBC → $250 Initiates Coverage On → Hold 11/08/2023 2.02% Tigress Financial $282 → $295 Maintains Buy 11/01/2023 -5.24% Goldman Sachs $315 → $274 Maintains Buy 10/16/2023 10.67% JP Morgan $315 → $320 Maintains Overweight 08/02/2023 3.75% Stifel $275 → $300 Maintains Buy 08/02/2023 8.94% JP Morgan $275 → $315 Maintains Overweight 08/02/2023 10.67% TD Cowen $287 → $320 Maintains Outperform 08/02/2023 -1.44% Wells Fargo $240 → $285 Maintains Equal-Weight 08/02/2023 11.71% B of A Securities $283 → $323 Maintains Buy 08/02/2023 15.51% Credit Suisse $279 → $334 Maintains Outperform 08/02/2023 8.94% Goldman Sachs $274 → $315 Maintains Buy 08/02/2023 -13.54% Barclays

Morgan Stanley analyst Angel Castillo initiates coverage on Caterpillar (NYSE:CAT) with a Equal-Weight rating and announces Price Target of $270.

Caterpillar (NYSE:CAT) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 12/19/2023 1.2% Stifel $285 → $293 Maintains Buy 11/20/2023 -13.65% HSBC → $250 Initiates Coverage On → Hold 11/08/2023 1.89% Tigress Financial $282 → $295 Maintains Buy 11/01/2023 -5.36% Goldman Sachs $315 → $274 Maintains Buy 10/16/2023 10.52% JP Morgan $315 → $320 Maintains Overweight 08/02/2023 3.62% Stifel $275 → $300 Maintains Buy 08/02/2023 8.8% JP Morgan $275 → $315 Maintains Overweight 08/02/2023 10.52% TD Cowen $287 → $320 Maintains Outperform 08/02/2023 -1.56% Wells Fargo $240 → $285 Maintains Equal-Weight 08/02/2023 11.56% B of A Securities $283 → $323 Maintains Buy 08/02/2023 15.36% Credit Suisse $279 → $334 Maintains Outperform 08/02/2023 8.8% Goldman Sachs $274 → $315 Maintains Buy 08/02/2023 -13.65% Barclays $225 → $250 Maintains Equal-Weight 08/02/2023 -19.18% Baird $183 → $234 Maintains Underperform 07/18/2023 -6.75% Citigroup $240 → $270 Maintains

Stifel analyst Stanley Elliott maintains Caterpillar (NYSE:CAT) with a Buy and raises the price target from $285 to $293.