Brokers Set Expectations for Caterpillar FY2027 Earnings

Caterpillar Inc. (NYSE:CAT) – Equities researchers at Erste Group Bank lifted their FY2027 earnings per share estimates for shares of Caterpillar in a note issued to investors on Wednesday, October 21st. Erste Group Bank analyst H. Engel now anticipates that the industrial products company will earn $32.36 per share for the year, up from their prior forecast of $32.14. Erste Group Bank currently has a “Hold” rating on the stock. The consensus estimate for Caterpillar’s current full-year earnings is $27.74 per share.

Other equities analysts have also recently issued reports about the company. Wall Street Zen raised Caterpillar from a “hold” rating to a “buy” rating in a report on Saturday, October 10th. Needham & Company LLC set a $980.00 target price on Caterpillar in a research report on Thursday, September 10th. Weiss Ratings upgraded shares of Caterpillar from a “buy (b-)” rating to a “buy (b)” rating in a research note on Wednesday, October 14th. Truist Financial lowered their target price on Caterpillar from $1,225.00 to $1,100.00 and set a “buy” rating for the company in a research note on Monday, October 5th. Finally, Zacks Research downgraded shares of Caterpillar from a “strong-buy” rating to a “hold” rating in a research note on Monday, October 5th. Fifteen research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company. According to MarketBeat, Caterpillar currently has an average rating of “Moderate Buy” and an average price target of $947.42.

Caterpillar Stock Performance

Shares of CAT opened at $714.14 on Monday. Caterpillar has a 12-month low of $521.67 and a 12-month high of $1,073.46. The company has a 50-day moving average of $792.99 and a two-hundred day moving average of $806.88.

Caterpillar (NYSE:CAT) last issued its quarterly earnings data on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share (EPS) for the quarter, topping the consensus estimate of $6.22 by $1.95. The firm had revenue of $20.54 billion for the quarter, compared to analyst estimates of $19.34 billion. The business’s revenue for the quarter was up 23.7% compared to the same quarter last year. During the same period in the prior year, the firm posted $4.72 earnings per share.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of CAT. North Dakota State Investment Board increased its stake in shares of Caterpillar by 3.9% during the third quarter. North Dakota State Investment Board now owns 13,912 shares of the industrial products company’s stock valued at $11,280,000 after acquiring an additional 523 shares during the period. Beacon Bank & Trust raised its holdings in Caterpillar by 1.6% during the 3rd quarter. Beacon Bank & Trust now owns 6,105 shares of the industrial products company’s stock worth $4,950,000 after buying an additional 96 shares during the period. Vantage Investment Partners LLC lifted its position in shares of Caterpillar by 4.5% in the 3rd quarter. Vantage Investment Partners LLC now owns 23,386 shares of the industrial products company’s stock valued at $18,961,000 after acquiring an additional 1,015 shares in the last quarter. Corrado Advisors LLC acquired a new stake in shares of Caterpillar in the third quarter worth $224,000. Finally, Lynx Investment Advisory lifted its stake in Caterpillar by 5.3% in the 3rd quarter. Lynx Investment Advisory now owns 1,024 shares of the industrial products company’s stock worth $830,000 after acquiring an additional 52 shares in the last quarter. 70.98% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling

In other Caterpillar news, CEO Joseph E. Creed sold 32,401 shares of the company’s stock in a transaction dated Friday, August 28th. The shares were sold at an average price of $808.98, for a total value of $26,211,760.98. Following the completion of the transaction, the chief executive officer owned 34,555 shares in the company, valued at approximately $27,954,303.90. This represents a 48.39% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Company insiders own 0.33% of the company’s stock.

Caterpillar Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, November 19th. Shareholders of record on Monday, October 26th will be paid a $1.63 dividend. This represents a $6.52 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date is Monday, October 26th.

Key Headlines Impacting Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Strong backlog and AI-related demand: Caterpillar’s power-generation equipment is benefiting from data-center and artificial-intelligence infrastructure spending. The company reportedly has a record $72 billion backlog, with orders extending through 2030, supporting a favorable long-term growth outlook. Learn Why The Bull Case For Caterpillar Could Change Following AI Power Demand
• Positive Sentiment: Upcoming earnings catalyst: Analysts expect another quarter of revenue and earnings growth when Caterpillar reports on October 29. A recent estimate increase from Erste Group adds to the positive pre-earnings sentiment. Erste Group Bank Raises Earnings Estimates for Caterpillar
• Positive Sentiment: Shareholder returns and capacity expansion: Caterpillar confirmed a $1.63 quarterly dividend payable November 19 and is investing approximately $1 billion in North Carolina to expand compact-equipment manufacturing. These developments reinforce the company’s income appeal and capacity to serve demand. Caterpillar vs. Deere: Which Heavy Equipment Dividend Is Growing Faster?
• Neutral Sentiment: Leadership transition: Resource Industries head Denise Johnson plans to retire in early 2027, with Derrick York named as her successor. The planned handoff provides continuity, although investors may monitor execution in the mining business. Caterpillar Taps Derrick York as Denise Johnson Sets Early 2027 Retirement
• Negative Sentiment: Tariff and legal risks: Rising tariffs could pressure Caterpillar’s margins, while the company is pursuing a significant legal challenge involving the United Kingdom’s post-Brexit tariffs. The outcome could affect costs and trade flexibility. Caterpillar Mounts Landmark Legal Test of UK’s Post-Brexit Tariffs

Caterpillar Company Profile

Caterpillar Inc is a manufacturer of construction, mining, and industrial equipment. Its product portfolio includes excavators, bulldozers, wheel loaders, motor graders, articulated trucks, and other machinery used in construction, infrastructure development, mining, quarrying, forestry, and related industries. The company also produces diesel and natural gas engines, industrial gas turbines, generator sets, and other power-generation and transportation equipment.

Caterpillar operates through businesses focused on construction industries, resource industries, and energy and transportation.