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Benzinga
201 days

Caterpillar Has Potential For Multiple Expansion Post Earnings, Goldman Sachs Says

1. CAT Q4 sales fell 5% year-over-year to $16.215 billion. 2. Adjusted earnings of $5.14 per share exceeded expectations. 3. 2025 sales expected to decline by ~1% due to pricing pressures. 4. Concerns over margin targets, 200 bps below consensus for 2025. 5. Strong destocking of $700 million and healthy order ratio of 1.08x.

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FAQ

Why Bearish?

Sales decline indicates potential weak demand, impacting future earnings similar to prior downturns.

How important is it?

Earnings results significantly influence investor sentiment and future price expectations for CAT.

Why Long Term?

Margin concerns could persist, affecting valuation in upcoming years as seen in other cyclical stocks.

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