Zacks Research Lowers Earnings Estimates for Caterpillar

Caterpillar Inc. (NYSE:CAT) – Research analysts at Zacks Research dropped their Q2 2025 earnings per share (EPS) estimates for shares of Caterpillar in a research note issued to investors on Wednesday, November 13th. Zacks Research analyst M. Das now expects that the industrial products company will post earnings per share of $5.14 for the quarter, down from their prior forecast of $5.49. The consensus estimate for Caterpillar’s current full-year earnings is $21.69 per share. Zacks Research also issued estimates for Caterpillar’s FY2025 earnings at $20.61 EPS, Q1 2026 earnings at $5.27 EPS, Q2 2026 earnings at $5.66 EPS, Q3 2026 earnings at $5.48 EPS and FY2026 earnings at $22.19 EPS.

Caterpillar (NYSE:CAT) last announced its earnings results on Wednesday, October 30th. The industrial products company reported $5.17 earnings per share for the quarter, missing analysts’ consensus estimates of $5.33 by ($0.16). Caterpillar had a net margin of 16.26% and a return on equity of 59.09%. The business had revenue of $16.11 billion during the quarter, compared to analyst estimates of $16.37 billion. During the same quarter last year, the business posted $5.52 earnings per share. The business’s quarterly revenue was down 4.2% compared to the same quarter last year.

Several other research analysts also recently issued reports on the company. Truist Financial upped their price objective on Caterpillar from $399.00 to $456.00 and gave the stock a “buy” rating in a report on Wednesday, October 9th. Citigroup decreased their price target on Caterpillar from $445.00 to $435.00 and set a “buy” rating on the stock in a report on Thursday, October 31st. Bank of America boosted their price objective on Caterpillar from $376.00 to $434.00 and gave the stock a “buy” rating in a report on Monday, September 30th. Evercore ISI lowered shares of Caterpillar from an “in-line” rating to an “underperform” rating and raised their target price for the company from $321.00 to $365.00 in a research note on Wednesday. Finally, Morgan Stanley downgraded shares of Caterpillar from an “equal weight” rating to an “underweight” rating and dropped their price target for the stock from $349.00 to $332.00 in a research note on Monday, October 14th. Four equities research analysts have rated the stock with a sell rating, eight have given a hold rating and six have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $365.33.

Caterpillar Stock Performance

Shares of Caterpillar stock opened at $384.07 on Friday. The company has a debt-to-equity ratio of 1.33, a current ratio of 1.40 and a quick ratio of 0.86. The firm has a market cap of $185.43 billion, a P/E ratio of 17.81, a P/E/G ratio of 1.91 and a beta of 1.10. The firm has a 50 day simple moving average of $381.86 and a 200 day simple moving average of $354.07. Caterpillar has a fifty-two week low of $241.81 and a fifty-two week high of $418.50.

Caterpillar Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, November 20th. Investors of record on Monday, October 21st will be paid a dividend of $1.41 per share. The ex-dividend date is Monday, October 21st. This represents a $5.64 dividend on an annualized basis and a yield of 1.47%. Caterpillar’s payout ratio is 26.15%.

Insiders Place Their Bets

In related news, insider Cheryl H. Johnson sold 2,975 shares of the stock in a transaction dated Thursday, August 22nd. The stock was sold at an average price of $342.48, for a total transaction of $1,018,878.00. Following the completion of the transaction, the insider now directly owns 15,615 shares in the company, valued at approximately $5,347,825.20. This trade represents a 16.00 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Gerald Johnson bought 100 shares of the business’s stock in a transaction on Wednesday, September 4th. The stock was purchased at an average price of $338.59 per share, for a total transaction of $33,859.00. Following the purchase, the director now directly owns 2,842 shares in the company, valued at approximately $962,272.78. This represents a 3.65 % increase in their position. The disclosure for this purchase can be found here. In the last three months, insiders have sold 23,749 shares of company stock worth $9,251,912. Company insiders own 0.29% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the business. Smallwood Wealth Investment Management LLC grew its holdings in shares of Caterpillar by 2.6% in the 3rd quarter. Smallwood Wealth Investment Management LLC now owns 1,037 shares of the industrial products company’s stock valued at $405,000 after acquiring an additional 26 shares in the last quarter. First Bank & Trust grew its stake in Caterpillar by 4.0% in the third quarter. First Bank & Trust now owns 709 shares of the industrial products company’s stock valued at $277,000 after purchasing an additional 27 shares in the last quarter. Washington Trust Bank raised its stake in shares of Caterpillar by 1.2% during the 3rd quarter. Washington Trust Bank now owns 2,349 shares of the industrial products company’s stock worth $919,000 after purchasing an additional 27 shares in the last quarter. Pacifica Partners Inc. boosted its holdings in shares of Caterpillar by 1.6% in the 3rd quarter. Pacifica Partners Inc. now owns 1,807 shares of the industrial products company’s stock valued at $707,000 after buying an additional 28 shares during the last quarter. Finally, Vanguard Capital Wealth Advisors grew its stake in shares of Caterpillar by 0.8% in the third quarter. Vanguard Capital Wealth Advisors now owns 3,466 shares of the industrial products company’s stock valued at $1,356,000 after buying an additional 28 shares in the last quarter. Institutional investors own 70.98% of the company’s stock.

About Caterpillar

Caterpillar Inc manufactures and sells construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives in worldwide. Its Construction Industries segment offers asphalt pavers, compactors, road reclaimers, forestry machines, cold planers, material handlers, track-type tractors, excavators, telehandlers, motor graders, and pipelayers; compact track, wheel, track-type, backhoe, and skid steer loaders; and related parts and tools.