Benzinga | Jul 29, 2021 10:40AM EDT

A Preview Of Caterpillar's Earnings

Caterpillar (NYSE:CAT) announces its next round of earnings this Friday, July 30. Here is Benzinga's look at Caterpillar's Q2 earnings report.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Caterpillar EPS will likely be near $2.38 while revenue will be around $12.58 billion, according to analysts. In the same quarter last year, Caterpillar announced EPS of $1.03 on revenue of $10.00 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to post earnings in line with the consensus estimate when it reports Friday, EPS would be up 131.07%. Sales would be have grown 25.84% from the same quarter last year. Here is how the Caterpillar's reported EPS has stacked up against analyst estimates in the past: Quarter Q1 2021 Q4 2020 Q3 2020 Q2 2020EPS Estimate 1.94 1.49 1.12 0.64EPS Actual 2.87 2.12 1.34 1.03Revenue Estimate 11.09 B 11.25 B 9.80 B 9.38 BRevenue Actual 11.89 B 11.23 B 9.88 B 10.00 B

Want Real-Time Earnings Calendar Updates?

Benzinga consistently updates its earnings calendars to stay up-to-date with the latest company earnings reports. Check out the full earnings calendar list updated in real-time by following this link.

Stock Performance

Shares of Caterpillar were trading at $211.44 as of July 28. Over the last 52-week period, shares are up 58.29%. Given that these returns are generally positive, long-term shareholders are probably content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Caterpillar is scheduled to hold the call at 08:30:00 ET and can be accessed here.