Reality Check: Catepillar Slashes Guidance Again, Sees Q1 EPS 30% Below Estimate
by Tyler Durden
ZeroHedge.com
03/17/2016
Moments ago Caterpillar, the company which as we promptly report every month, has never seen a “greater depression”…
… “surprised” markets with yet another reality check when it announced early this morning that it is slashing its Q1 revenue and EPS guidance, as follows:
Caterpillar expects first quarter 2016 sales and revenues to be in a range of $9.3 to $9.4 billion. Wall Street’s estimate was for a $10.2 billion number
The EPS estimate for the first quarter 2016 is expected to be $0.50 to $0.55 per share. Excluding restructuring costs, the profit estimate for first quarter 2016 is expected to be $0.65-$0.70 per share. On a non-GAAP basis, the consensus estimate was $0.95, implying a nearly 30% cut to expectations.
What is perplexing is that even as CAT slashed Q1 guidance, the Company also said that its “remained comfortable with full year guidance for 2016 sales and revenues and profit per share.” It is unclear just how the company plans to make up for the Q1 drop in future quarters, as it is unclear if anyone else “remains comfortable” with this guidance which puts CAT’s 2016 revenue outlook of $42 billion…
The Rest…HERE
