Stacey Vanek Smith: Caterpillar, the world’s largest maker of construction and mining equipment, releases its quarterly earnings today.
From WILL, Sean Powers reports.
Sean Powers: Fears about poor business overseas and in the U.S. led Jeffries analyst Stephen Volkmann to downgrade his rating for Caterpillar this month. Still, he thinks the Illinois-based company will turn out a positive earning’s report today.
Stephen Volkmann: The stock has obviously pulled back quite a bit already. I think it’s unlikely in my view that you’re going to see a huge disappointment.
Volkmann and other analysts, like Morningstar’s Adam Fleck, are worried about how international markets could impact Caterpillar’s long-term performance.
Adam Fleck: You could paint a pretty gruesome picture in which China gets a lot worse, Europe continues to be very bad, and even in the U.S. gets pulled down along with that, and Caterpillar would certainly not be immune.
Caterpillar maybe gave us a hint of what today’s earnings report will say when it reported an 11 percent increase yesterday in machinery sales from April through June, driven in part by strong U.S. demand.
I’m Sean Powers for Marketplace.
Marketplace is on a mission.
We believe Main Street matters as much as Wall Street, economic news is made relevant and real through human stories, and a touch of humor helps enliven topics you might typically find…well, dull.
Through the signature style that only Marketplace can deliver, we’re on a mission to raise the economic intelligence of the country—but we don’t do it alone. We count on listeners and readers like you to keep this public service free and accessible to all. Will you become a partner in our mission today?