Caterpillar (NYSE:CAT) declined in trading after its Q1 revenues fell short of estimates. The company generated Q1 sales and revenues of $15.8 billion, which were flat year-over-year due to lower sales volume. This fell short of analysts’ forecasts of $16 billion.
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The construction and mining equipment company reported Q1 adjusted earnings of $5.60 per share, compared to $4.91 per share in the same period last year. This was above consensus estimates of $5.14 per share.
Caterpillar’s construction business saw its revenues decline by 5% year-over-year to $6.4 billion. In contrast, its energy and transportation equipment business saw Q1 revenues of $6.25 billion, an increase of 7% year-over-year.
Is CAT a Good Stock to Buy?
Analysts remain cautiously optimistic about CAT stock, with a Moderate Buy consensus rating based on seven Buys, nine Holds, and two Sells. Over the past year, CAT has surged by more than 65%, and the average CAT price target of $339.41 implies a downside potential of 6.6% from current levels. These analyst ratings are likely to change following CAT’s Q1 results today.
