Caterpillar Q2 results preview: Analysts expect lower sales amid demand slowdown

Caterpillar (NYSE:CAT) is scheduled to announce Q2 earnings results on Tuesday, August 6th, before market open.
The consensus EPS estimate is $5.54 (-0.2% Y/Y) and the consensus revenue estimate is $16.67B (-3.6% Y/Y).
(CAT) shares have risen 8.5% since the beginning of the year, and investors remain focused on the machinery manufacturer’s long-term strategy, dividends, and sales amid global challenges. The company said revenue this year should be similar to 2023 results, while analysts forecast a slight gain to $67.3 billion.
With construction activity slipping, the manufacturing PMI low, and other recessionary signals, it seems likely that Caterpillar’s sales will decline faster than expected over the coming two years, writes financial analyst Harrison Schwartz.
Caterpillar’s (CAT) construction equipment peers such as The Volvo Group and CNH Industrial have updated their guidance, lowering their outlook. Yet, another SA author says, Caterpillar’s Q2 “report is delicate and could lead to high volatility if the company fails to meet high expectations.”
Over the last 2 years, CAT has beaten EPS estimates 88% of the time and has beaten revenue estimates 63% of the time.
Over the last 3 months, EPS estimates have seen 7 upward revisions and 3 downward. Revenue estimates have seen 1 upward revision and 3 downward.

Tags: CAT