Fly News Breaks for June 5, 2019
News For CAT From the Last 2 Days
Jul 23, 2019 | 14:16 EDT
Notable companies reporting before tomorrow's open, with earnings consensus, include AT&T (T), consensus 89c... Boeing (BA), consensus $1.87... Thermo Fisher Scientific (TMO), consensus $3... NextEra Energy (NEE), consensus $2.31... UPS (UPS), consensus $1.92... Anthem (ANTM), consensus $4.61... Caterpillar (CAT), consensus $3.12... Boston Scientific (BSX), consensus 38c... Northrop Grumman (NOC), consensus $4.68... General Dynamics (GD), consensus $2.68... V.F. Corp (VFC), consensus 29c... Amphenol (APH), consensus 93c... Hilton (HLT), consensus $1.02... Freeport-McMoRan (FCX), consensus (5c)... Santander Consumer (SC), consensus 91c... Knight-Swift Transportation (KNX), consensus 58c.
Jul 23, 2019 | 12:39 EDT
Caterpillar (CAT) is scheduled to report results of its fiscal second quarter before the market opens on Wednesday, July 24, with a conference call scheduled for 11:00 am ET. What to watch for: 1. GUIDANCE: When Caterpillar reported its Q1 results on April 24, the company raised its fiscal 2019 earnings per share guidance to $12.06-$13.06 from $11.75-$12.75, against analyst expectations of $12.30 at that time. During the Q1 earnings conference call, management said the company expected a "modest" year-over-year sales increase in FY19. On May 2, the company reiterated its FY19 EPS guidance of $12.06-$13.06, against analyst expectations of $12.30 at that time. Current analyst estimates sit at $12.24. 2. Q1 RESULTS: On April 24, Cat Financial reported Q1 revenues of $736M, an increase of $46M, or 7%, compared with Q1 of 2018. Q1 profit was $98M, a $7M, or 8%, increase from Q1 of 2018. The increase in revenues was primarily due to a $33M favorable impact from higher average financing rates and a $19M favorable impact from higher average earning assets, partially offset by an $8M unfavorable impact from returned or repossessed equipment. Profit before income taxes was $142M for Q1, compared with $124M for the Q1 of 2018. During Q1, retail new business volume was $2.35B, a decrease of $190M, or 7%, from Q1 of 2018. The decrease was primarily driven by lower volume in North America and Asia/Pacific. "Our portfolio and business performed well despite some remaining challenges in the Cat Power Finance portfolio," said Dave Walton, president of Cat Financial and vice president of the Financial Products Division of Caterpillar. "With relentless focus on expanding our ability to serve customers globally through financial services solutions, we remain well-positioned to serve the needs of Caterpillar, Cat dealers and our growing customer base worldwide." 3. RETAIL MACHINES SALES: On June 13, Caterpillar disclosed in a regulatory filing that its total retail machines sales were up 6% on a three month rolling basis in May. For reference, retail sales of machines were up 7% in the period ending in April and up 8% in the period ending in March. The company reported world Resources Industries sales were up 21% in the May-end period, compared to an April-end period increase of 18%. Construction Industries world sales were up 2% in the May-end period, versus a 4% increase in the prior three-month period ending in April. Total Energy & Transportation Retail Sales were up 1% in the May-end period, and were also up 1% in the April-end period. 4. QUARTERLY DIVIDEND RAISED: On May 2, Caterpillar's board authorized an increase to the quarterly cash dividend of 20% to $1.03 per share of common stock, payable August 20, to shareholders of record at the close of business on July 22. Caterpillar said it expects to increase the dividend in each of the following four years by at least a high single-digit percentage. With its remaining free cash flow, the company said it intends to repurchase shares on a more consistent basis, with the goal of at least offsetting dilution in market downturns. "Through the execution of our strategy, Caterpillar is now a stronger and more profitable company that can produce higher free cash flow through the cycles," added CEO Jim Umpleby. "We plan to return substantially all ME&T free cash flow to shareholders through dividend increases and more consistent share repurchases to create more long-term value for shareholders."