Caterpillar (CAT) EPS Preview

Caterpillar Inc. (CAT) will release second quarter earnings before the opening bell on Tuesday, August 1, 2023. (1)

CAT is the world’s leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. Wall Street expects the machinery giant to $4.58 per share (EPS) with sales reaching $16.49 billion. (2) Both numbers are up sharply over last year’s EPS of $3.18 and $14.25 billion in revenue.

Shares of CAT have been on a rip higher since early June but have flattened out as earnings news approaches. The mega cap has been range bound between $255 on the bottom and $265 on the top. Next Tuesday’s financial scorecard will likely push the stock beyond either boundary.

If earnings are already baked in, a dip to support at $250 wouldn’t be surprising. Anything worse than expected could put shares of CAT on a collision course with its 50-day moving average of $235.69 and rising.  Better than forecast earnings and guidance could be enough for bulls to challenge the 52-week high of $266.04. A new high would likely be followed by new, higher highs.

Trading earnings is only appropriate for the most aggressive investors who can afford to lose money in short timeframes.

Rich Meyers


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