Caterpillar Stock: What to Expect from Q3 Earnings and Recent Market Trends

Caterpillar Inc. (NYSE: CAT) is set to announce its third-quarter earnings on Wednesday, October 30, 2024, before the markets open. Analysts are closely watching the heavy equipment maker’s performance, particularly in the construction industry segment and inventory levels. Wall Street expects Caterpillar to post a quarterly EPS of $5.35, which represents a 3.1% decline from the previous quarter. Revenue is also anticipated to decrease by 3.3% to $16.24 billion.

Despite the expected decline in earnings and revenue, Caterpillar’s stock has shown significant strength over the past few years. Since the end of the 2020 fiscal year, CAT stock has gained approximately 133%, primarily driven by favorable changes in revenues.

In recent trading, Caterpillar’s stock dropped 0.8% to close at $387.51 on Tuesday, with the stock trading as low as $385.55 during the day. The average analyst price target for CAT shares is about $369, according to FactSet.

In addition to its financial performance, Caterpillar has been making strategic moves to enhance its market position. The company recently extended its long-standing joint venture with Trimble (Nasdaq: TRMB) to expand the distribution of grade control solutions in the construction sector. This partnership aims to accelerate innovation and increase customer adoption.