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1 week Caterpillar Drops Despite 2Q Earnings Beat Yahoo Finance     

Caterpillar Drops Despite 2Q Earnings BeatShares of Caterpillar (CAT) fell almost 2.8% on Friday despite beating 2Q earnings estimates. Its 2Q adjusted earnings of $1.03 per share exceeded analysts’ estimates of $0.64. Moreover, revenues of $10 billion surpassed Street estimates of $9.38 billion. However, the company’s outlook for dealer inventories weighed on its stock.During the second quarter, dealers reduced inventories for new equipment by $1.4 billion. The company now anticipates dealer inventories to decline by over $2 billion in 2020, up from its previous estimate of $1.5 billion.Following 2Q earnings, Oppenheimer analyst Noah Kaye reiterated his Hold rating on the stock. He said, “While decrementals of 32% were consistent with our cross-cycle analysis, sales in construction, mining, and E&T broadly showed resilience.”On July 24, Stifel Nicolaus analyst Stanley Elliott lifted the price target to $150 (12.9% upside potential) from $135 and reaffirmed a Buy rating. Elliott highlighted several “recent data points that suggest some upside relative to expectations for the machinery business.” He argued, “The results of component supplier Carlisle Brake & Friction, as well as Volvo Construction Equipment trends that were better than feared, suggest potential upside to Q2 and Q3 sell-side expectations, particularly in Caterpillar’s machinery segments.”Overall, CAT analysts have a cautiously optimistic Moderate Buy consensus on the stock. The average analyst price target stands at $139.89, implying 5.3% upside potential from current levels. (See CAT stock analysis on TipRanks).Related News: Comcast Beats Estimates On Robust Internet Customer Growth Molson Coors Delivers Q2 Earnings Beat Despite Covid-19 Fallout Expedia Incurs Hefty Q2 Loss; Top Analyst Sticks To Buy Call More recent articles from Smarter Analyst: * GM, EVgo Team Up To Add 2,700 EV Fast Chargers; CS Says Buy Stock Now * Microsoft Said To Halt TikTok Talks As Wedbush Says Deal Makes ‘Strategic Sense’ * Pinterest Pops 36% After Quarterly Revenue Beat Fueled By Ad Recovery * Spirit To Slash 1,100 Jobs Due To 737 MAX Production Cut, Covid-19 Woes


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