revenue
50 $billion
FY 2015
official guidance
SINDA LTD.
Last · NYSE$13.24-0.44 (-3.22%)close · yahoo · 7h ago
Market cap$2.10B158.8M sh
P/E · TTM-42.7fwd -50.0 · eps -0.31 · loss
Beta—vs S&P 500
Div yield0.00%annual · TTM
52w range
$10.03$18.95
Volume81.0Ksession
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
Strong BuyBuyHoldSellStrong Sell
Earnings resilience is offset by deteriorating backlog, cyclical demand and limited visibility.
Hold: Caterpillar delivered Q1 sales of $12.7 billion and all-in EPS of $1.81, with adjusted EPS of $1.86, but the earnings beat was helped by a $120 million logistics-business sale and strong cost control rather than improving demand. Management held 2015 sales guidance at about $50 billion and raised all-in EPS to $4.70 ($5.00 excluding restructuring), yet expects Q2 sales and profit below Q1 as oil, mining, China, Brazil and currency pressures intensify.
Themes
- Q1 2015 Earnings
- Oil Exposure
- Mining Downturn
- Backlog Decline
- Restructuring
- Pricing Pressure
Near term
Q2 is expected to be lower than Q1 for both sales and profit; oil-related reciprocating-engine declines begin to weigh more heavily.
Dealer inventories should decline through the year, but company inventory is also expected to decrease only modestly, creating execution risk if demand weakens further.
Resource Industries margins are expected to moderate toward breakeven as discretionary spending and R&D increase.
Energy & Transportation margins should decline as higher-margin oil products fall, partly offset by stronger Solar gas-compression and marine timing.
Share repurchases are planned at roughly the Q1 pace of $400 million per quarter, but management emphasized balance-sheet preservation amid uncertainty.
Longer term
Restructuring is substantial: roughly $900 million of cumulative costs through 2015, with management targeting $400 million-$500 million of annual benefits after 2015.
The core operating model remains resilient: management cited roughly 25% decremental pull-through despite a sales decline from $66 billion in 2012 to an expected $50 billion in 2015.
Mining recovery is not visible: parked equipment, cannibalized utilization and delayed rebuilds are suppressing both new equipment and aftermarket demand.
Competitive pressure is increasing as the strong dollar benefits foreign-cost competitors; management specifically acknowledged aggressive pricing from Komatsu in mining.
A durable recovery depends on construction improvement in China and Brazil, mining stabilization, and a rebound in oil-related capital spending, none of which was evident on the call.
Red flags
The $0.25 EPS guidance increase was primarily driven by the $120 million logistics-business gain; management said there was little change in the underlying incentive-compensation outlook.
Backlog fell $800 million sequentially to $16.5 billion, with declines in Construction and Resource Industries; orders have not kept pace with oil-related sales.
Management explicitly said Resource Industries margins could be around breakeven for the year and that aftermarket recovery timing is difficult to predict.
Price realization was only $105 million, or less than 1%, and full-year pricing is expected to be around positive 0.5% or less despite escalating foreign-competitor pressure.
The company raised expected 2015 restructuring costs from $150 million to $250 million, primarily for mining facilities, while near-term facility actions can create additional rearrangement costs.
North American construction was strong in Q1, but management expects total Construction Industries sales down 5%-10% for the year and acknowledged early effects from lower oil prices in U.S. energy regions.
Forward outlook
eps diluted
4.7 $per share
FY 2015
official guidance
adjusted eps
5 $per share
FY 2015
official guidance
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
Upcoming earnings
1:30 PM UTC+1
Period
Sep 2026
Est. EPS
−$0.06
Est. revenue
0
Earnings transcripts
Documents
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