Goldman Sachs (NYSE:GS) said they really like the short-term prospects of Caterpillar (NYSE:CAT), and increased their earnings per share and price target estimates for the large equipment company.
Even so, the risk/reward balance over the long term is balance said Goldman, and they maintained their "Neutral" rating on Caterpillar.
Earnings per share estimates for the next three were increased by an average of 10 percent. 2010 was raised to $4.25; 2011 to $5.45; and 2012 to $6.80 a share.
That is dependent on an economic recovery said Goldman, although the strength of commodities and the resultant demand for equipment for miners, and possibly farmers in reference to agriculture, could keep the company growing even if the majority of the rest of the economy sputters.
Many companies had been holding off on purchasing new equipment, and now they must do it, and so that restocking should also benefit Caterpillar in the near term.
The price target on Caterpillar was raised by Goldman from $70 to $77.
Caterpillar closed Wednesday at $76.18, down $0.21, or 0.27 percent.
Showing posts with label Mining Equipment. Show all posts
Showing posts with label Mining Equipment. Show all posts
Thursday, September 23, 2010
Wednesday, June 30, 2010
Caterpillar (NYSE:CAT) Adding New Plant in Brazil
Caterpillar (NYSE:CAT) announced Tuesday it will be building a new manufacturing facility in Brazil, as growing demand for mining and construction equipment in Latin America continues to surge.
Although this is a long-term strategy for Caterpillar, Latin America has experienced a fairly strong economic recovery over the last 12 months, and that should continue on for some time, especially in the mining sector, which promises to be robust around the world over the next decade or so.
Even so, sales of equipment to Latin America in May had dropped by 2 percent, highlighting resistance to spending on new equipment by businesses.
Global sales on the other hand made a nice upward move for Caterpillar, increasing by 11 percent in May, although we'll have to wait and see if that's sustainable, as economic conditions are perceived to be worsening rather than getting better.
Products assembled at the new plant will be small wheel loaders and backhoe loaders.
Construction on the new site, which hasn't been chosen yet, is scheduled for some time in the early part of 2011.
Although this is a long-term strategy for Caterpillar, Latin America has experienced a fairly strong economic recovery over the last 12 months, and that should continue on for some time, especially in the mining sector, which promises to be robust around the world over the next decade or so.
Even so, sales of equipment to Latin America in May had dropped by 2 percent, highlighting resistance to spending on new equipment by businesses.
Global sales on the other hand made a nice upward move for Caterpillar, increasing by 11 percent in May, although we'll have to wait and see if that's sustainable, as economic conditions are perceived to be worsening rather than getting better.
Products assembled at the new plant will be small wheel loaders and backhoe loaders.
Construction on the new site, which hasn't been chosen yet, is scheduled for some time in the early part of 2011.
Monday, April 26, 2010
Caterpillar (NYSE:CAT) Revenue Down, Earnings Up
Caterpillar (NYSE:CAT) gave the Dow a boost today as its earnings exceeded expectations for the last quarter.
Earnings in the first quarter was 36 cents a share in contrast to the same quarter last year when they had a loss of 19 cents a share. Revenue for the quarter plunged by 11 percent though.
As usual, China was largely the impetus behind increased sales in some of the sectors of the company, particularly mining and construction equipment, including excavators and bulldozers.
Sales to mature countries remain weak as expected.
In probably the most important news for the company, Caterpillar did give positive guidance going forward, and that is what is more important than the numbers, as everything looks good after the disaster last year.
Earnings in the first quarter was 36 cents a share in contrast to the same quarter last year when they had a loss of 19 cents a share. Revenue for the quarter plunged by 11 percent though.
As usual, China was largely the impetus behind increased sales in some of the sectors of the company, particularly mining and construction equipment, including excavators and bulldozers.
Sales to mature countries remain weak as expected.
In probably the most important news for the company, Caterpillar did give positive guidance going forward, and that is what is more important than the numbers, as everything looks good after the disaster last year.
Wednesday, March 3, 2010
Joy Global (NASDAQ:JOYG) Raises Guidance
Joy Global Raises Guidance
Joy Global (NASDAQ:JOYG) received a nice boost today after it raised its guidance, driving its shares higher, even though profits were lower than expected.
In their first fiscal quarter, the mining equipment manufacturer had its net profit fall by 11 percent to $76.2 million, or 73 cents a share. Last year profits came in a $85.7 million or 73 cents share.
The good news there was Joy Global beat the street consensus of 64 cents a share, giving it good news there as well, even though profits were down.
Where the guidance of Joy Global was increased was for its annual target, which originally stood at $2.85 a share, but now has increased by 20 cents a share to $3.05a share for the year.
The increased guidance was largely based on a huge increase of equipment orders of 22 percent for the first quarter, which will equal about $808 million in contrast to the same quarter last year of orders worth $684 million.
Joy Global Raises Guidance
Joy Global (NASDAQ:JOYG) received a nice boost today after it raised its guidance, driving its shares higher, even though profits were lower than expected.
In their first fiscal quarter, the mining equipment manufacturer had its net profit fall by 11 percent to $76.2 million, or 73 cents a share. Last year profits came in a $85.7 million or 73 cents share.
The good news there was Joy Global beat the street consensus of 64 cents a share, giving it good news there as well, even though profits were down.
Where the guidance of Joy Global was increased was for its annual target, which originally stood at $2.85 a share, but now has increased by 20 cents a share to $3.05a share for the year.
The increased guidance was largely based on a huge increase of equipment orders of 22 percent for the first quarter, which will equal about $808 million in contrast to the same quarter last year of orders worth $684 million.
Joy Global Raises Guidance
JPMorgan (NYSE:JPM): Terex (NYSE:TEX) for Sale?
Terex for Sale?
Analysts at JPMorgan said that Terex Corp. (NYSE:TEX) could be offering itself for sale, generating strong movements in the price of the shares of the stock.
This comes on the heals of Terex selling its highly profitable mining equipment business last month to Bucyrus International for $1.3 billion.
With the mining equipment business being its most consistent performer, it was highly criticized when they sold the unit, probably what has generated the idea the entire company may be for sale, or parts of the company which make the rest of the whole.
Considering the mining industry should boom for years to come, it didn't make much sense when Terex CEO Ron DeFeo said it was a first step in transforming Terex into a more diverse company which manufactures niche industrial products and machinery.
The construction side of the equation is easy to understand, but the mining part makes little sense, unless it had to be included in the recent sale to make the deal happen.
Terex for Sale?
Analysts at JPMorgan said that Terex Corp. (NYSE:TEX) could be offering itself for sale, generating strong movements in the price of the shares of the stock.
This comes on the heals of Terex selling its highly profitable mining equipment business last month to Bucyrus International for $1.3 billion.
With the mining equipment business being its most consistent performer, it was highly criticized when they sold the unit, probably what has generated the idea the entire company may be for sale, or parts of the company which make the rest of the whole.
Considering the mining industry should boom for years to come, it didn't make much sense when Terex CEO Ron DeFeo said it was a first step in transforming Terex into a more diverse company which manufactures niche industrial products and machinery.
The construction side of the equation is easy to understand, but the mining part makes little sense, unless it had to be included in the recent sale to make the deal happen.
Terex for Sale?
Friday, December 18, 2009
Joy Global (Nasdaq:JOYG) Fourth Quarter Results
Joy Global (Nasdaq: JOYG) is a manufacturer of mining equipment, and their fourth quarter results show the company has a solid ending to the year, and a decent 2009 in general.
Earnings per share for the year gained a nice 28 percent for 2009, and that was net sales increasing by only 5 percent.
What that tells us is Joy Global had some strong backlog o forders which helped them during these more difficult economic times, where overall mining equipment orders have been drying up.
Another positive for the company is they greatly increase their supply chain management, and were able to streamline costs nicely, which could set them up for nice profits going forward once a real recovery begins to happen.
Operating margins for 2009 endd at 20 percent, a great performance when bookings were down for mining equipment. Again, that was a testament to great cost-cutting measures.
Even with all the backlog and great performance, things remain tenuous for the time, as orders for new mining equipment have plunged by 74 percent from last year at the same time, making it tough going forward into 2010 for Joy Global.
If it wasn't for aftermarket products things would have been far more dismal, as original equipment bookings were almost non-existent for the company over the last year.
Earnings per share for the year gained a nice 28 percent for 2009, and that was net sales increasing by only 5 percent.
What that tells us is Joy Global had some strong backlog o forders which helped them during these more difficult economic times, where overall mining equipment orders have been drying up.
Another positive for the company is they greatly increase their supply chain management, and were able to streamline costs nicely, which could set them up for nice profits going forward once a real recovery begins to happen.
Operating margins for 2009 endd at 20 percent, a great performance when bookings were down for mining equipment. Again, that was a testament to great cost-cutting measures.
Even with all the backlog and great performance, things remain tenuous for the time, as orders for new mining equipment have plunged by 74 percent from last year at the same time, making it tough going forward into 2010 for Joy Global.
If it wasn't for aftermarket products things would have been far more dismal, as original equipment bookings were almost non-existent for the company over the last year.
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