On the other hand, the stock currently carries a Zacks Rank of #2. This has resulted in an Earnings ESP of -4.70%. How Have the Numbers Shaped Up for Caterpillar?įor Caterpillar, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). Please note that a negative Earnings ESP reading is not indicative of an earnings miss. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. Our proprietary surprise prediction model - the Zacks Earnings ESP (Expected Surprise Prediction) - has this insight at its core. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.Įstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. The consensus EPS estimate for the quarter has been revised 0.06% lower over the last 30 days to the current level. Revenues are expected to be $16.5 billion, up 15.8% from the year-ago quarter. This construction equipment company is expected to post quarterly earnings of $4.51 per share in its upcoming report, which represents a year-over-year change of +41.8%. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. On the other hand, if they miss, the stock may move lower. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 1.
While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. Wall Street expects a year-over-year increase in earnings on higher revenues when Caterpillar (CAT) reports results for the quarter ended June 2023.
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