Caterpillar Drops Despite 2Q Earnings Beat

Shares of Caterpillar (CAT) fell almost 2.8% on Friday despite beating 2Q earnings estimates. Its 2Q adjusted earnings of $1.03 per share exceeded analysts’ estimates of $0.64. Moreover, revenues of $10 billion surpassed Street estimates of $9.38 billion. However, the company’s outlook for dealer inventories weighed on its stock.During the second quarter, dealers reduced inventories for new equipment by $1.4 billion. The company now anticipates dealer inventories to decline by over $2 billion in 2020, up from its previous estimate of $1.5 billion.Following 2Q earnings, Oppenheimer analyst Noah Kaye reiterated his Hold rating on the stock. He said, “While decrementals …read more

Source:: Yahoo Finance