It’s going to be an ugly day for Caterpillar (CAT), whose shares are down $2.96, or 5%, at $52.89 pre-market, after the company this morning reported Q4 sales off the mark, even though profit per share beat estimates. The company sees EPS this year significantly below estimates.
Sales fell 37% to $7.898 billion, about $200 million below estimates, yielding profit per share of 41 cents, which was substantially ahead of the 28-cent average estimate.
For this year, the company forecast revenue to rise 10% to 25%, which would be $35.64 billion to $40.5 billion, comfortably ahead of the $36.1 billion average estimate, though profit per share is expected to be only $2.50 “at the midpoint,” which is below the $2.71 average estimate.
The company said an “unfavorable mix of sales” was the factor most driving downside in earnings, along with a less favorable tax rate.
Chair and CEO Jim Owens gave the outlook a positive spin, stating “�We�re encouraged by signs of improving demand. Dealer sales to end users are up, order rates are up, dealer inventories came down in 2009, and we�re seeing stronger service parts sales.”
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