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Caterpillar Misses on the Top and Bottom Lines

Tuesday - 4/23/2013, 2:00am  ET

Caterpillar reported earnings on April 22. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Caterpillar missed estimates on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue dropped significantly. GAAP earnings per share dropped significantly.

Margins contracted across the board.

Revenue details
Caterpillar reported revenue of $13.21 billion. The 13 analysts polled by S&P Capital IQ expected revenue of $13.93 billion on the same basis. GAAP reported sales were 17% lower than the prior-year quarter's $15.98 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.31. The 19 earnings estimates compiled by S&P Capital IQ averaged $1.38 per share. GAAP EPS of $1.31 for Q1 were 45% lower than the prior-year quarter's $2.37 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 25.6%, 280 basis points worse than the prior-year quarter. Operating margin was 9.2%, 530 basis points worse than the prior-year quarter. Net margin was 6.7%, 320 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $15.94 billion. On the bottom line, the average EPS estimate is $1.90.

Next year's average estimate for revenue is $62.02 billion. The average EPS estimate is $7.40.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Caterpillar is outperform, with an average price target of $108.73.

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This article was originally published as Caterpillar Misses on the Top and Bottom Lineson Fool.com

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