Caterpillar Press Release: Q2 Non-GAAP EPS of $3.18 beats by $0.16

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Caterpillar Inc. ($NYSE:CAT) announced its second quarter earnings results today, posting non-GAAP EPS of $3.18, which beat analyst expectations by $0.16. Revenue came in at $14.2 billion, missing analyst estimates by $190 million. It is not yet clear how the market will react to this news, but it is possible that this miss could have a negative impact on Caterpillar’s stock price and earnings in the long term.

Market Reaction

CATERPILLAR Inc. ($NYSE:CAT) stock opened at $188.0 on Tuesday and closed at $183.5 after releasing their Q2 non-GAAP EPS of $3.18 which beat the estimate by $0.16. Media coverage has been mostly positive since the news was published. Some analysts are concerning about the long-term outlook for the company given the current trade tensions between the U.S. and China.

VI Analysis

The company’s fundamentals reflect its long-term potential, and the below analysis on CATERPILLAR is made simple by the VI app. The fair value of CATERPILLAR shares is around $193.9, calculated by VI Line. Now, CATERPILLAR stock is traded at $183.5, a fair price that is undervalued by 5%.

Summary

Caterpillar Inc. released its second quarter earnings results on Wednesday morning, with non-GAAP earnings per share of $3.18 beating analysts’ estimates by $0.16.

There are a number of reasons why Caterpillar’s stock price fell despite the company’s strong earnings results. Firstly, the company’s guidance for the full year was below analysts’ expectations. Finally, Caterpillar’s stock price may have been impacted by the overall sell-off in the stock market on Wednesday following the release of the Federal Reserve’s minutes from its June meeting. Despite the stock price decline, Caterpillar’s strong second quarter earnings results and guidance for the full year suggest that it is still a good long-term investment.