Caterpillar Boosts Outlook, but Q2 Profit Misses View; Shares Plunge (CAT)

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Construction and mining equipment maker Caterpillar Inc. ( CAT ) 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 share.

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 billion.

Caterpillar shares fell $6.80, or -6.2%, in premarket trading Friday.

The Bottom Line
Shares of Caterpillar ( CAT ) 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. ( CAT ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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