Caterpillar Inc. (NYSE:CAT) is a world renowned name in the construction and mining machinery industry with a market capitalization of $77.8 billion. Caterpillar has long been considered a bellwether of national and global economic strength
Ahead of its third quarter earnings release, Caterpillar reported a 13% rise in global retail sales for the three months ended Sep 2017, with improvement noted across all regions. This upbeat growth figure follows a 12% rise in July and 11% increase in August, averaging 12% for the third quarter. The improvement continues to be driven by the Asia-Pacific region and the construction sector. Notably, the Resource Industries has also picked up lately.
Lately, the construction sector in Asia Pacific has shown promise while the leading indicators of U.S. non-residential construction signal robust conditions ahead. This, along with Caterpillar’s incessant efforts to cut down costs helped the behemoth deliver a turnaround this year. Last year, its results had been battered by the weak mining industry, low oil prices, stronger U.S. dollar and China's economic woes.
Investors are thus awaiting Caterpillar’s results to see whether the solid momentum in the first half of the year will be carried forward in the third quarter as well. Let’s have a quick look at the third quarter release of this Peoria, Illinois-based construction and mining equipment manufacturer.
Estimate Trend & Surprise History
Investors should note that over the last 30 days, the Zacks Consensus Estimate for the third quarter has moved up 3% for Caterpillar. Coming to the earnings surprise, Caterpillar has an impressive track record, beating the Zacks Consensus Estimate in all of the last four quarters, with an average positive surprise of 41.4%.
Caterpillar, Inc. Price and EPS Surprise
Caterpillar, Inc. (CAT): Free Stock Analysis Report
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