[ACCESSWIRE]
Upcoming AWS Coverage on Deere
LONDON, UK / ACCESSWIRE / February 8, 2017 / Active Wall St. announces its post-earnings coverage on Caterpillar, Inc. (NYSE: CAT). The Company announced its financial results for the fourth quarter fiscal 2016 (Q4 FY16) and full year 2016 (FY16) on January 26, 2017. The Peoria, Illinois-based Company reported an approximately flat quarterly profit per share; however, it beat Wall Street's consensus estimates. Register with us now for your free membership at:
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One of Caterpillar's competitors within the Farm & Construction Machinery space, Deere & Co. (NYSE: DE), is expected to report earnings on February 17, 2017 before market open. The report will be for the fiscal Quarter ending January 2017. AWS will be initiating a research report on Deere following the release of its earnings results.
Today, AWS is promoting its earnings coverage on CAT; touching on DE. Get our free coverage by signing up to:
http://www.activewallst.com/registration-3/?symbol=CAT
http://www.activewallst.com/registration-3/?symbol=DE
Earnings Reviewed
In Q4 FY16, Caterpillar reported sales and revenues of $9.57 billion, which was 13% lower than the $11.03 billion recorded at the end of Q4 FY15. Further, sales and revenues numbers for the reported quarter fell short of market expectations of $9.76 billion. The Company attributed this decline in quarterly sales and revenues to lower sales volume, as there is lower end user demand due to continued weak commodity prices and economic weakness in many countries.
Furthermore, the Company posted operating loss of $1.26 billion in Q4 FY16 compared to operating loss of $175 million in the prior year's comparable quarter.
The manufacturer of construction and mining equipment reported Q4 FY16 loss of $1.17 billion, or $2.00 loss per diluted common share, compared to a loss of $94 million, or $0.16 loss per diluted common share, in Q4 FY15. Excluding one-time expenses, adjusted profit for Q4 FY16 came in at $627 million, or $0.83 per share, relatively flat from $646 million, or $0.83 per share, in Q4 FY15. However, the Company's adjusted profit per share beat market estimates of $0.65 per diluted share.
Caterpillar's full year FY16 sales and revenues was down by 18% y-o-y to $38.54 billion from $47.01 billion in FY15. The Company's reported loss of $67 million, or $0.11 loss per diluted common share, in FY16 against profit of $2.51 billion, or $4.18 per diluted common share, in the FY15. Furthermore, adjusted profit declined during FY16 to $2.74 billion, or $3.42 per share, from $4.52 billion, or $5.35 per share in FY15.
Segment Performance
During Q4 FY16, Construction Industries sales and revenues was $3.59 billion, down 8% y-o-y from $3.91 billion reported in the last year period. However, the segment's operating profit surged 88% y-o-y in Q4 FY16 to $334 million from $178 million in the prior year's same quarter.
Caterpillar's Resource Industries generated sales and revenues amounting to $1.44 billion in Q4 FY16 versus $1.88 billion in prior year's corresponding quarter. The segment's operating loss widened to $711 million in Q4 FY16 from $80 million in Q4 FY15.
Energy & Transportation segment's sales and revenues declined 15% y-o-y to $3.85 billion in Q4 FY16. Furthermore, the segment reported operating profit of $638 million in Q4 FY16, down 14% from $741 million in the previous year's same quarter.
Geographical Contribution
The Company's sales and revenues in the North American region fell 14% y-o-y to $4.19 billion in Q4 FY16. Sales and revenues from EAME region declined 29% on a y-o-y basis to $2.08 billion. In Q4 FY16, Latin America's sales and revenues were down by 16% y-o-y to $904 million. However, the Asia/Pacific region's sales and revenues grew 10% y-o-y to $2.40 billion in Q4 FY16.
Cash Flow & Balance Sheet
Caterpillar's net cash provided by operating activities for the year ended December 31, 2016, came in at $5.61 billion compared to $6.68 billion in FY15. The Company had cash and short-term investments balance of $7.17 billion as on December 31, 2016, compared to $6.46 billion at the close of books on December 31, 2015. Furthermore, Machinery, Energy, & Transportation (ME&T) debt-to-capital ratio was 41.0% at the end of Q4 FY16 compared to 39.0% at the end of Q4 FY15.
Dividend
In a separate press release on December 14, 2016, Caterpillar's Board of Directors declared a cash dividend of $0.77 per share of the common stock, payable on February 18, 2017, to all stockholders of record at the close of business on January 20, 2017.
Outlook
For full year FY17, Caterpillar reduced its sales and revenues guidance to about $36 billion to $39 billion with a midpoint of $37.5 billion. The Company expects profit for FY17 to be $2.30 per share at the midpoint of the provided sales and revenues outlook range. Additionally, the Company now projects profit excluding restructuring costs to be $2.90 per share at the midpoint of the provided sales and revenues outlook range.
Stock Performance
On Tuesday, February 07, 2017, the stock closed the trading session at $93.31, marginally climbing 0.47% from its previous closing price of $92.87. A total volume of 4.99 million shares have exchanged hands, which was higher than the 3-month average volume of 4.85 million shares. Caterpillar's stock price advanced 14.30% in the last three months, 13.75% in the past six months, and 49.84% in the previous twelve months. The Company's shares have a dividend yield of 3.30%. At Tuesday's closing price, the stock's net capitalization stands at $54.88 billion.
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