Replies to post #26796 on The Rising Influence of Rising Affluence

[DewDiligence]

Factoid—CAT’s 8% gain today was its best share-price performance since early 2017.

Recession??

[DewDiligence]

Recession?

Now that the calendar-3Q22 reporting season is nearly over, CAT’s stellar results and confident guidance (#msg-170300076) continue to warrant investor attention.

Yes, CAT has some tailwinds in the energy and mining sectors that aren’t shared by most multinational industrial companies, but these tailwinds are not (IMO) a sufficient reason to discount CAT as a bellwether for the global economy.

[DewDiligence]

CAT invests undisclosed amount in lithium-battery maker:

https://finance.yahoo.com/news/caterpillar-announces-investment-lithos-energy-125900799.html

[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