Zacks Research Reduces Earnings Estimates for Caterpillar

Key Points

• Zacks Research has reduced Caterpillar's Q4 2025 earnings estimates from $4.47 to $4.07 per share, reflecting concerns about the company's financial performance.
• Caterpillar reported Q2 earnings of $4.72 EPS, which missed analysts' expectations, despite achieving higher revenue of $16.57 billion.
• The company recently increased its quarterly dividend to $1.51 per share, up from $1.41, indicating a focus on returning value to shareholders.

Caterpillar Inc. (NYSE:CAT - Free Report) - Equities research analysts at Zacks Research decreased their Q4 2025 earnings estimates for Caterpillar in a research note issued on Monday, September 1st. Zacks Research analyst Team now forecasts that the industrial products company will post earnings per share of $4.07 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 Q1 2026 earnings at $4.28 EPS, Q2 2026 earnings at $5.19 EPS, Q3 2026 earnings at $4.76 EPS, FY2026 earnings at $19.38 EPS, Q1 2027 earnings at $4.51 EPS and FY2027 earnings at $20.58 EPS.

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

A number of other equities research analysts have also weighed in on CAT. Jefferies Financial Group reissued a "buy" rating and issued a $500.00 target price on shares of Caterpillar in a research note on Friday. Baird R W upgraded Caterpillar from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, May 13th. JPMorgan Chase & Co. lifted their target price on shares of Caterpillar from $475.00 to $520.00 and gave the stock an "overweight" rating in a research note on Wednesday, August 6th. DA Davidson upped their price target on shares of Caterpillar from $331.00 to $388.00 and gave the company a "neutral" rating in a report on Tuesday, July 22nd. Finally, Bank of America raised their price target on shares of Caterpillar from $460.00 to $495.00 and gave the stock a "buy" rating in a report on Wednesday, August 6th. Two research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and five have given a Hold rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $457.20.

Caterpillar Stock Performance

NYSE CAT opened at $415.81 on Wednesday. The company has a 50-day simple moving average of $414.65 and a two-hundred day simple moving average of $361.08. Caterpillar has a 12-month low of $267.30 and a 12-month high of $441.15. The firm has a market cap of $194.80 billion, a price-to-earnings ratio of 21.15, a PEG ratio of 2.53 and a beta of 1.41. The company has a quick ratio of 0.81, a current ratio of 1.34 and a debt-to-equity ratio of 1.50.

Caterpillar Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, August 20th. Shareholders of record on Monday, July 21st were issued a $1.51 dividend. This is a boost from Caterpillar's previous quarterly dividend of $1.41. The ex-dividend date was Monday, July 21st. This represents a $6.04 annualized dividend and a yield of 1.5%. Caterpillar's dividend payout ratio (DPR) is currently 30.72%.

Insider Activity

In other Caterpillar news, insider Jason Kaiser sold 2,161 shares of the firm's stock in a transaction dated Monday, August 11th. The shares were sold at an average price of $417.70, for a total value of $902,649.70. Following the completion of the sale, the insider directly owned 8,632 shares in the company, valued at $3,605,586.40. This trade represents a 20.02% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, Director Susan C. Schwab sold 2,324 shares of Caterpillar 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 sale, the director directly owned 6,917 shares in the company, valued at approximately $2,835,970. The trade was a 25.15% decrease in their ownership of the stock. The disclosure for this sale can be found here. Company insiders own 0.33% of the company's stock.

Institutional Investors Weigh In On Caterpillar

Several hedge funds have recently made changes to their positions in CAT. Kilter Group LLC purchased a new stake in Caterpillar in the second quarter worth about $27,000. Mid American Wealth Advisory Group Inc. purchased a new stake in shares of Caterpillar in the 2nd quarter worth approximately $28,000. Family Legacy Financial Solutions LLC bought a new position in shares of Caterpillar during the second quarter valued at approximately $32,000. RiverPark Advisors LLC purchased a new position in Caterpillar during the second quarter valued at approximately $32,000. Finally, Harbor Asset Planning Inc. bought a new position in Caterpillar in the second quarter worth approximately $34,000. 70.98% of the stock is currently owned by institutional investors.

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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