Construction equipment maker Caterpillar Inc. (
) on Monday posted better-than-expected first quarter earnings and
raised its full-year guidance, sending its shares higher.
The Peoria, IL-based company reported first quarter net income
of $233 million, or 36 cents per share, compared with a net loss
of$112 million, or 19 cents per share, in the year-ago period.
Excluding one-time items, adjusted profit was 50 cents per
Total net sales fell 11% from last year, to $8.23 billion.
On average, Wall Street analysts expected a smaller profit of 39
cents per share, albeit on higher sales of $8.84 billion.
Looking ahead, the company raised its full-year earnings
forecast to a range of $2.50 to $3.25 per share, which sales
ranging from $38 billion to $42 billion. On average, analysts
expect $2.69 per share on sales of $37 billion for the year.
Caterpillar shares rose $2.28, or +3.3%, in premarket trading
The Bottom Line
We had removed shares of CAT from our "recommended" list July
15,2008 when the stock was trading at $67.04. The company has a
2.44% dividend yield, based on Friday's closing stock price of
$68.78. The stock has technical support in the $60-$63 price area.
If the shares can firm up, we see overhead resistance around the
$71-$75 price levels. We would remain on the sidelines for now.
Caterpillar Inc. (
) 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
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, as well as a detailed explanation of
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