The Rising Influence of Rising Affluence

[DewDiligence]

CAT 2Q22 results

Revenue: $14.2B, +11% YoY; non-GAAP EPS*: $3.18, +22% YoY. Despite these impressive numbers, the stock is down ~5% today because: 1) sales by CAT’s independent dealers to equipment end users were down slightly YoY; and 2) the outlook for sales of large excavators in China is bleak.

CAT does not provide specific guidance for sales or EPS, but it expects 2H22 to be better than 1H22 and that product price increases will more than offset increases in raw-materials costs for 2H22 and the full year.

*Non-GAAP EPS excludes restructuring costs, which is a policy that I take issue with insofar as a multinational, multifaceted business such as CAT’s has restructuring costs continually.


2Q22 PR:
https://finance.yahoo.com/news/caterpillar-reports-second-quarter-2022-103000767.html

CC slides:
https://s25.q4cdn.com/358376879/files/doc_presentations/2022/08/2Q-2022-Earnings-Release_Analyst-Slides-Final.pdf