Construction manufacturer and Dow component Caterpillar (NYSE: CAT) reported earnings of 72 cents per share, well ahead of expectations of a 22-cent per share profit.
Top-line revenue came in at $7.25 billion, which is a lot of money. Unfortunately, it was nearly a billion-and-a-half dollars below expectations of $8.86 billion.
How did Caterpillar manage to achieve its earnings beat on lower-than-anticipated revenue?
Cost cutting.
The company did raise its guidance for fiscal year 2009, but I don't see this coming from robust sales.
I rate Caterpillar a D, or sell.
At the time of publication, Louis Navellier held positions in Caterpillar.
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Reader Comments (Page 1 of 1)
8-01-2009 @ 8:53AM
Dan Barnett said...
Mr. Navellier,
You rate the stock as a sell but yet you hold some?