Construction equipment maker Caterpillar Inc. (
) on Thursday posted better-than-expected second quarter earnings,
prompting the company to raised its full-year outlook.
The Peoria, IL-based company reported second quarter net income
of $707 million, or $1.09 per share, compared with $371 million, or
60 cents per share, in the year-ago period. Revenue jumped 31% from
last year, to $10.41 billion.
On average, Wall Street analysts expected a much smaller profit
of 85 cents per share, on lower sales of $9.8 billion.
Looking ahead, the company boosted its full-year earnings
outlook to a range of $3.15 to $3.85 per share on sales of $39
billion to $42 billion. That new estimate compares to its prior
guidance of $2.50 to $3.25 per share, on $38 billion to $42 billion
in sales. Meanwhile, analysts expect $3.29 per share for the year,
on sales of $38.9 billion.
Caterpillar shares were mostly flat in premarket trading
The Bottom Line
We had removed shares of CAT from our recommended list back on July
15, 2008 when the stock was trading at $67.04. The company has a
2.63% dividend yield, based on last night's closing stock price of
$66.87. The stock has technical support in the $60-$62 price area.
If the shares can firm up, we see overhead resistance around the
$71-$72 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
Best Dividend Stocks
, as well as a detailed explanation of
our ratings system here
Created by Dividend.com