Zacks Research Has Negative View of Caterpillar Q3 Earnings

Key Points

• Zacks Research has downgraded Caterpillar’s Q3 2025 EPS estimate from $4.47 to $4.41, while the full-year earnings estimate is $19.86 per share.
• Despite the downgrade, multiple analysts have raised price targets for Caterpillar, with Citigroup setting a new target of $500.00 and a "buy" rating.
• Caterpillar is adjusting its quarterly dividend, increasing it from $1.41 to $1.51, which translates to an annualized dividend of $6.04 and a dividend yield of 1.5%.

Caterpillar Inc. (NYSE:CAT - Free Report) - Research analysts at Zacks Research lowered their Q3 2025 EPS estimates for Caterpillar in a report released on Monday, September 1st. Zacks Research analyst Team now expects that the industrial products company will post earnings of $4.41 per share for the quarter, down from their previous estimate of $4.47. The consensus estimate for Caterpillar's current full-year earnings is $19.86 per share. Zacks Research also issued estimates for Caterpillar's FY2025 earnings at $17.44 EPS, Q4 2026 earnings at $5.15 EPS and Q2 2027 earnings at $5.30 EPS.

A number of other analysts have also weighed in on the stock. DA Davidson raised their price objective on shares of Caterpillar from $331.00 to $388.00 and gave the company a "neutral" rating in a research note on Tuesday, July 22nd. Citigroup raised their price objective on shares of Caterpillar from $460.00 to $500.00 and gave the company a "buy" rating in a research note on Wednesday, August 6th. Melius upgraded shares of Caterpillar from a "hold" rating to a "buy" rating and set a $500.00 price objective for the company in a research note on Wednesday, July 9th. Evercore ISI upgraded shares of Caterpillar from an "in-line" rating to an "outperform" rating and set a $476.00 price objective for the company in a research note on Tuesday, August 19th. Finally, Barclays raised their price objective on shares of Caterpillar from $383.00 to $425.00 and gave the company an "equal weight" rating in a research note on Wednesday, August 6th. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $457.20.

Caterpillar Stock Down 0.3%

Shares of NYSE CAT opened at $414.73 on Thursday. The company has a current ratio of 1.34, a quick ratio of 0.81 and a debt-to-equity ratio of 1.50. Caterpillar has a 12 month low of $267.30 and a 12 month high of $441.15. The firm has a market capitalization of $194.29 billion, a PE ratio of 21.10, a price-to-earnings-growth ratio of 2.53 and a beta of 1.41. The firm has a fifty day simple moving average of $415.51 and a two-hundred day simple moving average of $361.45.

Caterpillar (NYSE:CAT - Get Free Report) last released its quarterly earnings results on Tuesday, August 5th. The industrial products company reported $4.72 EPS for the quarter, missing analysts' consensus estimates of $4.88 by ($0.16). Caterpillar had a return on equity of 48.95% and a net margin of 14.95%.The company had revenue of $16.57 billion during the quarter, compared to analysts' expectations of $16.14 billion. During the same period in the prior year, the firm earned $5.99 EPS. Caterpillar's quarterly revenue was down .7% on a year-over-year basis.

Caterpillar Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, August 20th. Investors of record on Monday, July 21st were issued a $1.51 dividend. The ex-dividend date of this dividend was Monday, July 21st. This is a positive change from Caterpillar's previous quarterly dividend of $1.41. This represents a $6.04 dividend on an annualized basis and a dividend yield of 1.5%. Caterpillar's payout ratio is 30.72%.

Insider Buying and Selling

In related news, Director Susan C. Schwab sold 2,324 shares of the firm's stock in a transaction that occurred on Friday, August 15th. The shares were sold at an average price of $410.00, for a total value of $952,840.00. Following the transaction, the director owned 6,917 shares of the company's stock, valued at approximately $2,835,970. This trade represents a 25.15% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider Jason Kaiser sold 2,161 shares of Caterpillar stock in a transaction that occurred on Monday, August 11th. The shares were sold at an average price of $417.70, for a total transaction of $902,649.70. Following the transaction, the insider directly owned 8,632 shares in the company, valued at $3,605,586.40. This represents a 20.02% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 21,653 shares of company stock valued at $8,943,642. 0.33% of the stock is owned by insiders.

Institutional Investors Weigh In On Caterpillar

Several institutional investors and hedge funds have recently modified their holdings of CAT. Kilter Group LLC bought a new stake in shares of Caterpillar during the second quarter valued at approximately $27,000. Mid American Wealth Advisory Group Inc. bought a new position in Caterpillar during the second quarter valued at $28,000. Compass Financial Services Inc grew its stake in shares of Caterpillar by 49.2% in the 1st quarter. Compass Financial Services Inc now owns 94 shares of the industrial products company's stock worth $31,000 after buying an additional 31 shares in the last quarter. Family Legacy Financial Solutions LLC purchased a new position in shares of Caterpillar in the 2nd quarter worth $32,000. Finally, RiverPark Advisors LLC bought a new stake in shares of Caterpillar in the 2nd quarter worth about $32,000. Institutional investors own 70.98% of the company's stock.

About Caterpillar

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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