Caterpillar Cites Supply Chain Issues for Top-Line Miss

The company also noted higher costs and its exit from Russia

Digital Content Manager
Aug 2, 2022 at 9:16 AM
facebook X logo linkedin

The shares of Caterpillar Inc. (NYSE:CAT) are off 3.5% at $188.01 ahead of the bell, following the blue-chip heavy equipment maker's second-quarter earnings report. CAT posted profits of $3.18 per share, which topped estimates, though its revenue of $14.25 billion fell short of expectations. The company said its sales were dinged by supply chain issues, rising costs, as well as pulling its business out of Russia. 

While the equity was able to log a 10.9% lead last month, it still sits at a more than 5.7% year-to-date deficit. The stock saw an impressive rally off its July 14 annual low, though it looks like some of this upside lost steam at the 70-day moving average. 

Options traders took a more bearish-than-usual stance on CAT ahead of its second-quarter report. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the security sports a 50-day put/call volume ratio of 1.06, which sits higher than 87% of readings from the past year. 

Analysts, meanwhile, have been split. Of the 16 in coverage, nine say "buy" or better, and seven say "hold" or worse. Adding to this, the 12-month consensus price target of $220.04 is a relatively slim 17.7% premium to current levels. 



Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI