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Shares of Caterpillar (CAT -2.55%) were pulling back on concerns around new tariffs on goods from Canada, Mexico, and China. Those weighed on the stock market generally, and Caterpillar specifically, as the multinational company is heavily dependent on the global supply chain.
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Caterpillar (NYSE: CAT) recently released its Q4 results, with revenue missing and earnings exceeding the street estimates. It reported revenue of $16.2 billion and adjusted earnings of $5.14 per share, compared to the consensus estimate of $16.4 billion and $5.02, respectively.
BofA Securities analyst Michael Feniger cut the price forecast on Caterpillar, Inc. CAT from $452 to $414 while retaining a Buy rating.
Higher interest rates and reduced construction lending threaten Caterpillar's recent strong performance, potentially leading to overvaluation and declining sales and profit margins. Analysts' expectations for Caterpillar's EPS and revenue growth are overly optimistic. They overlook temporary high-profit margins and the lack of necessary infrastructure planning. High inventory levels and a slowing construction demand outlook suggest that Caterpillar's sales and profit margins will significantly slow in the coming years.
Shares of Caterpillar (CAT -4.04%) slumped a little over 5% Thursday morning and were still trading around 4.8% lower as of 12:30 p.m. ET.
Caterpillar's 2024 revenues decline 3% year over year to $64.8 billion. The company projects 2025 revenues to be even lower.
Goldman Sachs analyst Jerry Revich, maintaining a Buy rating and $442 price forecast, expressed views on Caterpillar, Inc.'s CAT mixed fourth quarter FY24 results reported today.