Construction and mining equipment maker Caterpillar Inc. (
) on Friday raised its full-year earnings forecast, but its second
quarter results missed analyst expectations, sending its shares
plummeting in premarket trading Friday.
The Peoria, IL-based company reported second quarter net income
of $1.02 billion, or $1.52 per share, compared with $707 million,
or $1.09 per share, in the year-ago period. Excluding one-time
costs associated with its recent acquisition of mining giant
Bucyrus International, CAT said adjusted profit was $1.72 per
On average, Wall Street analysts expected a higher profit of
$1.74 per share.
Due to Bucyrus adding to its most recent results, revenue surged
44% from last year.
Looking ahead, the company raised its full-year sales outlook to
a range of $56 to $58 billion, up from prior guidance $52 to $54
Caterpillar shares fell $6.80, or -6.2%, in premarket trading
The Bottom Line
Shares of Caterpillar (
) have a 1.65% dividend yield, based on last night's closing stock
price of $111.60. The stock has technical support in the $100-$106
price area. If the stock can firm up, we see overhead resistance
around the all-time high levels of $115-$116 a share.
Caterpillar Inc. (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
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, as well as a detailed explanation of
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