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CATERPILLAR EXPECTS 2020 PROFIT BELOW ESTIMATES, STOCK FALLS -

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    • CATERPILLAR EXPECTS 2020 PROFIT BELOW ESTIMATES, STOCK FALLS
31-Jan
19:51 IST

In the Premarket trading session on Friday, Caterpillar Inc.’s stock was trading at 135.37- lower by 0.46% as compared to its previous close.

The company reported fourth-quarter earnings on Friday. The company reported better-than-expected for the fiscal fourth quarter but revenue fell short.

The company generated an EPS of $2.63 up by 3% for the fourth quarter compared to the same period last year. The EPS was above the consensus estimates of $2.37. Caterpillar brought in $13.14 billion in revenue for the fourth quarter, an 8% decline compared to the same period last year. The revenue was below the market expectation of $13.412 billion.

The company officials said that looking at the global uncertainty sales are expected to fell in 2020 as dealers are expected to reduce inventories. The company has downgraded outlook for 2020. The company expected 8.50 dollars to 10.00 dollars earnings per share while market analysts expected earnings per share of 10.63 dollars.

In 2019 caterpillar’s stock resisted a net gain of 16% but soon the stock dipped more than 10% in January alone.

On the technical front, the market is trading below 5, 20 and 50-days moving averages. The market is trading near the lower band of the Bollinger band. The RSI indicates a sideways movement while stochastic indicates an upward movement

Overall Bias is Negative and short-term trades can be initiated with below mentioned Stop Loss and Profit targets.

 

TRADE SUGGESTION- SELL @ 135.40 TAKE PROFIT @ 134.80 STOPLOSS@ 135.70

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