Caterpillar beats by $0.13, beats on revs; co sees FY16 forecast closer to bottom end of prior guidance
- Reports Q2 (Jun) earnings of $1.09 per share, excluding non-recurring items, $0.13 better than the Capital IQ Consensus of $0.96; revenues fell 16.0% year/year to $10.34 bln vs the $10.13 bln Capital IQ Consensus.
- The decrease was primarily due to lower sales volume resulting from continued weak commodity prices globally and economic weakness in developing countries. While sales for both new equipment and aftermarket parts declined in all segments, most of the decrease was for new equipment. Unfavorable price realization also contributed to the decline
- Sales declined in all regions
- Sales declined in all regions
- Mining, oil and gas, and rail industries remain challenged
- However, co does has strong balance sheet -- Maintained $0.77 per share dividend (announced June 8, 2016)
- Co sees FY16 forecast closer to bottom end of prior guidance; sees EPS at $3.70, excluding non-recurring items, vs. $3.53 Capital IQ Consensus Estimate; sees FY16 revs of $40-42 bln vs. $40.29 bln Capital IQ Consensus Estimate
- More specifically, co said, "The outlook for 2016 that we provided with our first-quarter financial results in April expected sales and revenues in a range of $40 to $42 billion. At the midpoint of that range, profit was expected to be $3.00 per share, or $3.70 per share excluding restructuring costs. Over the past quarter, economic risks have persisted and, as a result, our current expectations for 2016 sales and revenues are closer to the bottom end of that outlook range."
- Co also said, "World economic growth remains subdued and is not sufficient to drive improvement in most of the industries and markets we serve. Commodity prices appear to have stabilized, but at low levels. Global uncertainty continues, and the recent Brexit outcome and the turmoil in Turkey add to risks, especially in Europe."