Caterpillar Posts In-Line Q2 Earnings, But Sales Miss Views

Caterpillar, Inc. (NYSE:CAT) stock has received a short term price target of $ 88.08 from 13 Analyst. Its CEO Doug Oberhelman blamed the decline largely on “difficult conditions in several of the key industries we serve”. It expects the second half of the year to remain challenging and cited oil prices as a major factor.

Sales fell to $12.32 billion from $14.15 billion. The average estimate of nine analysts surveyed by Zacks Investment Research was for earnings of $1.25 per share. Analysts are calling for the stock to trade up to $86.39 over the next 12 months, compared to yesterday’s close of $79.74 – representing an 8.34% upside potential. Excluding non-recurring items, the company’s adjusted earnings came in at $1.27 per share.

Its sales of construction equipment dropped 18 percent, while sales of energy and transportation slipped 12 percent. Revenue plunged 13% to $12.3 billion, as foreign currency rates and a sluggish economy in foreign markets took a toll on sales.

The company also recently declared a quarterly dividend, which will be paid on Thursday, August 20th. The 1-week percentage change for the stock price is registered on -4.09%.A block transaction occurred with $64.1 million in upticks and $28.61 million in downticks while the up/down ratio was calculated to be 2.24.

Caterpillar now foresees revenue of about $49 billion, a billion less that previous guidance. (NYSE:CAT) filed a lawsuit against certain directors of Caterpillar Inc alleging that the company’s board concealed foul play by auditor PricewaterhouseCoopers in connection with tax evasion allegations. The company maintained its outlook for full-year adjusted earnings of $5 per share.

Caterpillar, the world’s largest maker of construction and mining machinery, has been facing a persistent slump in mining equipment, sluggishness in construction machinery in much of the world and a more recent slowdown in its most profitable business, engines used for such things as generating electricity, pushing gas through pipelines, running industrial machines and powering trains and ships.