On April 25th Caterpillar Inc (CAT) reported significantly better-than-anticipated earnings for the latest quarter, with one of the major contributing factors being its cost-cutting and restructuring efforts, according to a press release.
Caterpillar shares registered their largest daily surge in more than three years on Tuesday, while also marking a second consecutive session of gains. The stock went up 7.86% ($7.61) to $104.42, after touching an intraday high at $104.89, or a price level not seen since November 26th 2014 ($106.44). In the week ended on April 23rd the shares of the heavy machinery manufacturer added 1.31% to their market value compared to a week ago, which marked the fourth gain in the past six weeks. The stock has extended its advance to 12.57% so far during the current month, following a 4.03% slump in March. The latter has been the largest monthly drop since October 2016. For the entire past year, Caterpillar shares gained 36.46%.
The company’s adjusted earnings per share were reported at $1.28 during the first quarter of the year, far exceeding the median forecast by analysts ($0.62 per share).
At the same time, Caterpillar’s total revenue was reported at $9.8 billion during the latest quarter, again outstripping market expectations ($9.4 billion).
“Were also benefiting from our significant cost reduction and restructuring actions, which have improved cash flow and further strengthened an already healthy balance sheet”, Jim Umpleby, the company’s Chief Executive Officer, said, cited by Business Insider.
On the other hand, Umpleby highlighted some possible sources of uncertainty, which could adversely affect Caterpillar’s business performance.
“While we are raising the full-year outlook for sales and revenues, there continues to be uncertainty across the globe, potential for volatility in commodity prices, and weakness in key markets”, he noted.
In addition, the company’s press release cited ”geopolitical and market uncertainty along with volatility in commodity prices” as risk inducing factors during the months ahead.
According to CNN Money, the 19 analysts, offering 12-month forecasts regarding Caterpillar’s stock price, have a median target of $100.00, with a high estimate of $120.00 and a low estimate of $64.00. The median estimate is a 4.23% decrease compared to the closing price of $104.42 on April 25th.
The same media also reported that 14 out of 24 surveyed investment analysts had rated Caterpillar’s stock as “Hold”, while 8 – as “Buy”. On the other hand, 1 analyst had recommended selling the stock.
Daily and Weekly Pivot Levels
With the help of the Camarilla calculation method, today’s levels of importance for the Caterpillar stock are presented as follows:
R1 – $104.68
R2 – $104.95
R3 (Range Resistance – Sell) – $105.21
R4 (Long Breakout) – $106.01
R5 (Breakout Target 1) – $106.94
R6 (Breakout Target 2) – $107.38
S1 – $104.16
S2 – $103.89
S3 (Range Support – Buy) – $103.63
S4 (Short Breakout) – $102.83
S5 (Breakout Target 1) – $101.90
S6 (Breakout Target 2) – $101.46
By using the traditional method of calculation, the weekly levels of importance for Caterpillar Inc (CAT) are presented as follows:
Central Pivot Point – $94.42
R1 – $95.87
R2 – $97.41
R3 – $98.86
R4 – $100.30
S1 – $92.88
S2 – $91.43
S3 – $89.89
S4 – $88.34
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