Caterpillar Inc (CAT)

[Monksdream]

I bought Autozone shares in March 2009
Auto parts retailer who would have imagined

[Prudent Capitalist]

What a great long-term investment CAT has been. These shares are up so much of late, that CAT is now hugely overweight in a Beneficiary IRA I have that requires me to take annual Required Minimum Distributions (RMD). The CAT position is now greater than the BRK position. So, I was able this week to harvest some profits and sell a relatively small amount of the CAT position to fund this year's RMD, and my remaining CAT position is right up there with BRK and a couple of others. The stock markets enable smart long-term investors to reap huge rewards.

[Monksdream]

CAT new 52 hi

[Monksdream]

Cat Tractor is high tech

[Prudent Capitalist]

CAT closed near its ATH today. Great stuff. What a great Country!

[Monksdream]

What these ag tech dreamers pumping garbage third tier Nasdaq junk fail to understand is Cat Tractor is more ag tech than all of them combined

[Prudent Capitalist]

New ATH's for CAT seem to be almost a daily occurrence any more. Have owned a large position here for years with automatic reinvestment of all dividends, which compounds the long-term gains.

[Monksdream]

CAT new 52 hi

[Prudent Capitalist]

Yep! And she just keeps chuggin' higher & higher. If this keeps up CAT could someday pass up BRK as out largest holding.

[Monksdream]

CAT new 52 hi

[Prudent Capitalist]

And the new highs for CAT just keep on coming!

[Monksdream]

CAT new 52 week high

[DewDiligence]

CAT independent director bought $110K of stock on the open market last Friday:

https://www.sec.gov/Archives/edgar/data/18230/000110465924027620/xslF345X05/tm247306-1_4seq1.xml

You don’t often see insider buying when a stock is trading within a hair of its all-time high.

[DewDiligence]

CAT 4Q23 CC transcript:

https://finance.yahoo.com/news/q4-2023-caterpillar-inc-earnings-042056993.html

[DewDiligence]

The stock, +5% in the PM session, is trading at an all-time high.

[DewDiligence]

Excluding restructuring costs from non-GAAP EPS is a policy that I take issue with insofar as a multinational, multifaceted business such as CAT’s has restructuring costs continually. In 4Q23, however, non-GAAP EPS came in slightly lower than GAAP EPS due to the exclusion from non-GAAP EPS of one-time tax and OPEB benefits.

[DewDiligence]

CAT does not provide specific guidance for sales or EPS, but it expects 2024 sales to be similar to 2023 (see slide #18 at the link in the previous message).

[DewDiligence]

CAT reports 4Q23 results—completing_record_year_for sales_and_earnings:

PR:
https://www.caterpillar.com/content/dam/caterpillarDotCom/releases/4q23/4q23-caterpillar-inc-financial-results.pdf

CC slides:
https://s25.q4cdn.com/358376879/files/doc_financials/2023/q4/4Q-2023-Analyst-Slide-Deck-FINAL-2.pdf

4Q23 sales were $17.1B, +3% YoY.

4Q23 non-GAAP EPS was $5.23, up from $3.86 in 4Q22. 4Q23 GAAP EPS was $5.28, up from $2.49 in 4Q22.

[Monksdream]

CAT new 52 week high

[Monksdream]

I’m going to do something different by comparing Cat Tractor with the Russell 2000 ETF over a two-year period
Back in 2022 I bought $50,000 of the ETF and sold all of it in early 2023
It was a matter of following the money
Large and mid cap companies started to recover from the pandemic with help from legislation to expand America’s manufacturing capacity
The American consumer did its part
The IWM is comprised mostly of flaky Russell 2000 companies with an established history of no earnings
Investors tired of the hype about their promises and potential and instead opted for shares of mature, profitable companies that pay dividends

[DewDiligence]

It's an all-time high.

[Monksdream]

CAT new 52 week high

[barnyarddog]

Video: Caterpillar goes all in on EVs at CES

January 15, 2024
https://chargedevs.com/newswire/video-caterpillar-goes-all-in-on-evs-at-ces/

[Aceinhibitor561]

CAT an Excellent Rise indeed!!

[Monksdream]

CAT new 52 week high

[Prudent Capitalist]

Yep! Lovin' it big time. Have had all of our CAT shares on free automatic dividend reinvestment for years.

[DewDiligence]

CAT closes at all-time high.

[kid biscuit]

Rrright

[DewDiligence]

CAT 3Q23 CC transcript:

https://finance.yahoo.com/news/q3-2023-caterpillar-inc-earnings-041702760.html

[Prudent Capitalist]

Yep. Earnings report was fine and strong, including revenue, but then in the conference call they predicted some softness in the current quarter going forward and the share price got hammered.

[DewDiligence]

CAT “beats” on 3Q23 sales/earnings—but backlog declines…

PR:
https://www.caterpillar.com/content/dam/caterpillarDotCom/releases/3q23/3q23-caterpillar-inc-financial-results.pdf

CC slides:
https://s25.q4cdn.com/358376879/files/doc_financials/2023/q3/3Q_2023-Analyst-Slide-Deck.pdf


3Q23 sales were $16.8B, +12% YoY, beating the Wall Street consensus of $16.6B.

3Q23 non-GAAP EPS was $5.52, up from $3.95 in 3Q22, beating the Wall Street consensus of $4.80. 3Q23 GAAP EPS was $5.45, up from $3.87 in 3Q22.

CAT’s 9/30/23 order backlog was $28.1B, down $2.6B from $30.7B at 6/30/23.

CAT does not provide specific guidance for sales or EPS.

[Bountiful_Harvest]

Dow Jones Heavyweights - Caterpillar & Amgen Beat The Street:

https://www.forbes.com/sites/johnbuckingham/2023/08/09/dow-jones-heavyweightscaterpillar--amgen-beat-the-street/?sh=3edd9ff74b9b

[Agoura Guy]

RECESSION INCOMING!!!!!! WHO PAID $293.88????

SOME DEMENTED CRACK HEAD WALL STREET FUND MANAGER????

GET YOUR MONEY OUT BEFORE ITS TOO LATE!!!!!!

[DewDiligence]

CAT shares_hit_all-time_high_on_2Q23 “beat” with_robust_growth_in_all_business_segments.

2Q23 sales were 17.3B, +22% YoY. (The Wall Street consensus was $16.5B, so this was a solid beat.)

2Q23 non-GAAP EPS was $5.55, up from $3.18 in 2Q22. (The Wall Street consensus was $4.57, so this was a huge beat.)

CAT does not provide specific guidance for sales or EPS, but it expects improved sales and margins in the second half of 2023.

PR:
https://www.caterpillar.com/content/dam/caterpillarDotCom/releases/2q23/2q23-caterpillar-inc-financial-results.pdf

CC slides:
https://s25.q4cdn.com/358376879/files/doc_financials/2023/q2/2Q-2023-Analyst-Slide-Deck-Final.pdf

7-minute video:

[Bountiful_Harvest]

Caterpillar’s Sales Surge as Construction Booms:

https://www.wsj.com/articles/caterpillar-cat-q2-earnings-report-2023-1dd9702b

[makinezmoney]

$CAT: $300wkly calls were at $0.02 at the open

NOW at $0.44 !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!


THATS HOW U MAKE MONEY !!!!!!!!!!!!!!!!!!!!



GO $CAT

[Monksdream]

Earnings spotlight: Tuesday, August 1 - Merck (MRK), Pfizer (PFE), Advanced Micro Devices (AMD), Caterpillar (CAT), Starbucks (SBUX), Uber (UBER), and Altria (MO). JR Research, a Seeking Alpha analyst stated "Given relatively pessimistic analysts' estimates, the market is likely positioned for a disappointing Q2 release for Pfizer."

[DewDiligence]

CAT increases dividend for 29th consecutive year:

https://finance.yahoo.com/news/caterpillar-inc-increases-dividend-142600079.html

The new annualized dividend is $5.20 (up from $4.80). At the current share price (~$243), the new payout equates to a yield of 2.1%. Although this yield is not that high, CAT has raised the dividend by 17% cumulatively ($4.44—>$5.20) in the past two years (#msg-169089779). Moreover, CAT has an active share-buyback program.

[DewDiligence]

CAT—>Premiere player in transition to EVs:

What makes CAT a premiere player in the transition to EVs is not what CAT is doing with the equipment it sells to mining companies. Rather, CAT is a premier player in the transition to EVs because EVs require 6x the volume of mined materials as ICEs, which will greatly increase the demand for CAT’s heavy-duty mining equipment.

[DewDiligence]

CAT’s Bernstein webcast—(50 min)—is a great listen:

https://kvgo.com/bernstein-2023-39th-annual-sdc/caterpillar-june

[DewDiligence]

CAT’s CEO, Jim Umpleby said on today’s Bernstein webcast that mines operating with as few as 15-20 trucks can now benefit from autonomous equipment, despite the large capital investment (for new equipment and/or or retrofits).

Just a few years ago, a mine had to have 70 or more trucks to justify investing in autonomy, according to Umpleby.

[DewDiligence]

CAT 1Q23 CC transcript:

https://finance.yahoo.com/news/q1-2023-caterpillar-inc-earnings-041835520.html

[DewDiligence]

CAT 1Q23—>higher price realization and higher volume…

PR:
https://www.caterpillar.com/content/dam/caterpillarDotCom/releases/1q23/1q23-caterpillar-inc-financial-results.pdf

CC slides:
https://s25.q4cdn.com/358376879/files/doc_financials/2023/q1/1Q-2023-Caterpillar-Inc-Earnings-Presentation.pdf


1Q23 sales were $15.9M, +17% YoY. 1Q23 non-GAAP EPS was $4.91, up from $2.88 in 1Q22.

CAT does not provide specific guidance for sales or EPS, but it expects price realization during the rest of 2023 to offset inflation in COGS, as it did during 1Q23.

[Bountiful_Harvest]

Freyr plans to form battery coalition agreement with big players such as Caterpillar:

https://www.marketwatch.com/press-release/freyr-battery-targets-strategic-coalition-with-four-major-global-partners-2023-03-28?siteid=bigcharts&dist=bigcharts&tesla=y

[DewDiligence]

CAT...is an EV play, the CEO says on today’s GS webcast.

When I mentioned the above to an experienced investor, they thought I was talking about CAT’s electrifying its lineup of mining equipment, which was a reasonable interpretation. However, what I intended to convey in the above statement is that the robust demand for minerals that go into EV batteries will inevitably boost the demand for mining equipment sold by CAT.

CAT does intend to electrify its lineup of mining equipment, but that’s a separate (and subordinate) issue.

[DewDiligence]

CAT’s mining-equipment segment, comprising about 20% of CAT’s equipment sales, is an EV play, the CEO says on today’s GS webcast.

[DewDiligence]

CAT Financial’s past-due proportion of loans outstanding is near an all-time low, according to today’s GS webcast.

[DewDiligence]

CAT director sold $1.5M of stock—slightly more than half his holding:

https://www.sec.gov/Archives/edgar/data/18230/000110465923011649/xslF345X03/tm235765-1_4seq1.xml

[DewDiligence]

CAT 4Q22 results—2023 guidance…

4Q22 sales were $5.73M, +19% YoY. 4Q22 non-GAAP EPS was $3.86, up from $2.69 in 4Q22. 4Q22 non-GAAP EPS excluded a $925M non-cash impairment of goodwill and a $180M “mostly non-cash” restructuring chare; both of these items pertained to the Rail division of the Energy & Transportation segment.

Excluding restructuring costs from non-GAAP EPS is a policy that I take issue with insofar as a multinational, multifaceted business such as CAT’s has restructuring costs continually.

CAT does not provide specific guidance for sales or EPS, but it expects 2023 sales to be higher than 2022 due to price realization (see slide #18 at link below).


PR:
https://www.caterpillar.com/content/dam/caterpillarDotCom/releases/4q22/4q22-caterpillar-inc-financial-results.pdf

CC slides:
https://s25.q4cdn.com/358376879/files/doc_financials/2022/q4/4Q-2022-Caterpillar-Inc-Earnings-Presentation.pdf

[DewDiligence]

Probably not. Even if it does, CAT should be in good shape, IMO.