Caterpillar (NYSE:CAT) Releases Quarterly Earnings Results, Misses Estimates By $0.16 EPS

Key Points

• Caterpillar reported quarterly earnings of $4.72 per share, missing analysts' expectations of $4.88 by $0.16, while revenue reached $16.57 billion, exceeding estimates of $16.14 billion.
• The company announced an increase in its quarterly dividend to $1.51, up from $1.41, reflecting a 1.4% dividend yield and a payout ratio of 29.43%.
• Shares of Caterpillar rose by $0.66 to $434.36 after the earnings announcement, with institutional investors holding 70.98% of the company's stock.

Caterpillar (NYSE:CAT - Get Free Report) released its quarterly earnings results on Tuesday. The industrial products company reported $4.72 earnings per share for the quarter, missing analysts' consensus estimates of $4.88 by ($0.16), Zacks reports. Caterpillar had a net margin of 15.71% and a return on equity of 53.77%. The business had revenue of $16.57 billion for the quarter, compared to analyst estimates of $16.14 billion. During the same period in the prior year, the business earned $5.99 earnings per share. The company's revenue for the quarter was down .7% on a year-over-year basis.

Caterpillar Stock Performance

Shares of Caterpillar stock traded up $0.66 on Tuesday, hitting $434.36. The stock had a trading volume of 3,045,877 shares, compared to its average volume of 2,717,697. Caterpillar has a twelve month low of $267.30 and a twelve month high of $441.15. The business's 50 day moving average is $387.47 and its two-hundred day moving average is $354.37. The company has a quick ratio of 0.77, a current ratio of 1.32 and a debt-to-equity ratio of 1.43. The stock has a market cap of $204.60 billion, a price-to-earnings ratio of 21.17, a price-to-earnings-growth ratio of 2.68 and a beta of 1.40.

Caterpillar Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, August 20th. Stockholders of record on Monday, July 21st will be given a $1.51 dividend. The ex-dividend date of this dividend is Monday, July 21st. This is a positive change from Caterpillar's previous quarterly dividend of $1.41. This represents a $6.04 annualized dividend and a dividend yield of 1.4%. Caterpillar's dividend payout ratio (DPR) is currently 29.43%.

Insider Activity at Caterpillar

In related news, Director David Maclennan purchased 375 shares of the business's stock in a transaction that occurred on Wednesday, May 7th. The stock was acquired at an average cost of $320.70 per share, for a total transaction of $120,262.50. Following the completion of the purchase, the director owned 6,653 shares in the company, valued at approximately $2,133,617.10. This represents a 5.97% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 0.33% of the company's stock.

Institutional Investors Weigh In On Caterpillar

An institutional investor recently raised its position in Caterpillar stock. Brighton Jones LLC increased its position in Caterpillar Inc. (NYSE:CAT - Free Report) by 51.5% in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 7,409 shares of the industrial products company's stock after buying an additional 2,519 shares during the period. Brighton Jones LLC's holdings in Caterpillar were worth $2,688,000 at the end of the most recent reporting period. Institutional investors own 70.98% of the company's stock.

Analyst Ratings Changes

CAT has been the subject of several research reports. Oppenheimer lifted their target price on Caterpillar from $395.00 to $483.00 and gave the company an "outperform" rating in a research note on Thursday, July 17th. Melius upgraded Caterpillar from a "hold" rating to a "buy" rating and set a $500.00 target price on the stock in a report on Wednesday, July 9th. UBS Group upgraded Caterpillar from a "sell" rating to a "neutral" rating and lifted their target price for the stock from $272.00 to $357.00 in a report on Friday, May 16th. Melius Research upgraded Caterpillar from a "hold" rating to a "strong-buy" rating and set a $500.00 target price on the stock in a report on Wednesday, July 9th. Finally, Morgan Stanley upgraded Caterpillar from an "underweight" rating to an "equal weight" rating and cut their price target for the company from $300.00 to $283.00 in a report on Wednesday, April 16th. Seven research analysts have rated the stock with a hold rating, ten have given a buy rating and two have given a strong buy rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $419.33.

Caterpillar Company Profile

Caterpillar Inc manufactures and sells construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives in worldwide. Its Construction Industries segment offers asphalt pavers, compactors, road reclaimers, forestry machines, cold planers, material handlers, track-type tractors, excavators, telehandlers, motor graders, and pipelayers; compact track, wheel, track-type, backhoe, and skid steer loaders; and related parts and tools.

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