Caterpillar Inc (CAT) Options

CAT raises dividend for 31st consecutive year—to $6.04 annualized (from $5.64):

https://finance.yahoo.com/news/caterpillar-inc-increases-dividend-141900277.html Caterpillar expects to continue to return substantially all Machinery, Energy & Transportation (ME&T) free cash flow to shareholders over time through dividends and share repurchases.

CAT latest energy-control systems:

https://finance.yahoo.com/news/caterpillar-reveals-two-control-systems-120757103.html

See #msg-174689607 for related info.

Smart move. CAT shares are seriously undervalued here for the long term.

Another CAT director bought $120K of stock yesterday:

https://www.sec.gov/Archives/edgar/data/18230/000110465925045921/xslF345X05/tm2514392-1_4seq1.xml

CAT director bought $32K of stock on 5/2/25:

https://www.sec.gov/Archives/edgar/data/18230/000110465925044528/xslF345X05/tm2514008-1_4seq1.xml

Correction—Estimated tariff headwind_in 2Q25 is $250-350M—($0.52-0.73/sh)—not $350M as previously posted.

CAT reports soft_but_expected 1Q25 results:

https://www.caterpillar.com/content/dam/caterpillarDotCom/releases/1q25/1q25-caterpillar-inc-financial-results.pdf

• 1Q25 sales were $14.25B, -10% YoY. Volume declined by 8% YoY mainly due to reduced dealer inventory; price declined by 2% YoY.

• 1Q25 sales in the Construction segment (comprising 39% of non-financial corporate sales) were $5.18B, -19% YoY.

• 1Q25 sales in the Resources Industries (mining equipment) segment (comprising 22% of non-financial corporate sales) were $2.88B, -10% YoY.

• 2Q24 sales in the Energy & Transportation segment (comprising 49% of non-financial corporate sales) were $6.57B, -2% YoY.

• Note: The three business segments above sum to more than 100% of corporate non-financial sales due to inter-segment sales, which are removed from the total sales number.

• 1Q25 GAAP EPS was $4.20, down from $5.75 in 1Q24.

• 1Q26 non-GAAP EPS, which excludes restructuring costs, was $4.25, down from $5.60 in 1Q24.

CAT does not provide specific guidance for sales or EPS, but it reiterated today—that full-year 2025 results are expected to be slightly down from 2024.

CAT estimates that 2Q25 results will take a $350M ($0.73/sh) hit from tariffs. CAT has not provided an estimate for the tariff hit for the full year.

1Q25 CC slides:
https://s25.q4cdn.com/358376879/files/doc_financials/2025/q1/1Q-2025-Analyst-Slide-Deck-Final.pdf

Remember what 8 learned in middle school about trade wars and the great depression lol...

Lol u played it nicely I got out before the bs tariff wars

I bought puts in February this administration reminds me of Jimmy Carter for the Democrats lol...

CAT’s COO becomes CEO on 5/1/25:

https://finance.yahoo.com/news/caterpillar-chairman-ceo-jim-umpleby-104500111.html

CAT, I think it will go lower

You aren’t alone by any means professional asset managers have been net sellers for months to a year

yes sold it while i went on vacation last month, reduced my position on most stocks and 70 percent cash. Another calamity due to tariff wars.

CAT, new 52 week low

340's $$$ stick to your chitty chinese pennystock naz stocks lol

lmao more than that

LMAO..WHAT DO YOU HAVE 1 SHARE....BIG WHEEL ARE YOU TALKING TO YOURSELF

reduced my position today, still holding rest gl

hold 340's here back to 400's. If it doesn't then next support at 330 where i will add. Worst case low 300's before bouncing back up. Will be one of the infrastructure play to pop big if ukraine war ends.

eyeing this one this one will pop big with war ending in ukraine, infrastructure plays will be hot.

CAT director makes small—($37K)—open-market purchase:

https://www.sec.gov/Archives/edgar/data/18230/000110465925009475/xslF345X05/tm255527-1_4seq1.xml

CAT 4Q24 CC slides:

https://s25.q4cdn.com/358376879/files/doc_financials/2024/q4/4Q-2024-Analyst-Slide-Deck_Final.pdf

CAT 4Q24 CC transcript:

https://finance.yahoo.com/news/caterpillar-cat-q4-2024-earnings-181523050.html

CAT reports 4Q24 results—issues soft 2025 guidance:

https://finance.yahoo.com/news/caterpillar-reports-fourth-quarter-full-113000036.html

CAT does not issue specific guidance for any year or quarter; however, management said that 2025 was expected to be “slightly” down from 2024, and this was enough to send the share price down 4% today. Despite today’s selloff, CAT is +26% from its 12-month low.

p.s. CAT’s reciprocating-engine business is an AI-infrastructure play (#msg-174689607), so the stock had a mild selloff earlier this week on the DeepSeek news.

CAT, 10Q due 1/30

CAT’s CEO exercised options for ~$11M of stock yesterday and sold only the amount needed to cover tax liabilities:

https://www.sec.gov/Archives/edgar/data/18230/000110465924115989/xslF345X05/tm2427956-2_4seq1.xml

The options in questions did not expire until 2032, so this is a decidedly bullish transaction.

CAT 3Q24 CC transcript:

https://finance.yahoo.com/news/caterpillar-cat-q3-2024-earnings-151515070.html

CAT—(-2%)—reports 3Q24 results—lowers_expectations_for 4Q24:

https://finance.yahoo.com/news/caterpillar-reports-third-quarter-2024-103000540.html

3Q24 results were below consensus expectations due to soft sales in two of the three business segments: construction equipment (-9% YoY); and mining (-10% YoY). 3Q24 sales in the energy & transportation segment were +5% YoY.

Although CAT does not provide specific sales or earnings guidance for any quarter, CAT did say that 4Q24 sales will be down relative to 3Q24 and that full-year 2024 sales will be lower than the company previously expected.

CAT new 52 week high

Yes indeed. New highs are becoming very frequent here with CAT

CAT new 52/week high

Our little gem here looks to be heading to new ATH's.

CAT exhibits latest mining equipment at MINExpo 2024:

https://finance.yahoo.com/news/future-starts-today-minexpo-2024-132500076.html

The stock hit an all-time high today.

CAT 2Q24 CC transcript:

https://finance.yahoo.com/news/q2-2024-caterpillar-inc-earnings-053054912.html

CAT 2Q24 results have no surprises:

https://www.caterpillar.com/content/dam/caterpillarDotCom/releases/2q24/2q24-caterpillar-inc-financial-results.pdf

• 2Q24 sales were $16.7B, -4% YoY, with price increases not fully offsetting lower volume. CAT guided three months ago that 2Q24 would be a down quarter compared to 2Q23 (#msg-174303439).

• 2Q24 sales in the Construction segment (comprising 42% of non-financial corporate sales) were $6.68B, -7% YoY.

• 2Q24 sales in the Resources Industries (mining equipment) segment (comprising 20% of non-financial corporate sales) were $3.21B, -10% YoY.

• 2Q24 sales in the Energy & Transportation segment (comprising 46% of non-financial corporate sales) were $7.34B, +2% YoY.

• Note: The three business segments above sum to more than 100% of corporate non-financial sales due to inter-segment sales, which are removed from the total sales number.

• 2Q24 non-GAAP* EPS was $5.99, up from $5.55 in 2Q23.

• 2Q24 GAAP EPS was $5.48, down from $5.67 in 2Q23.

CAT does not provide specific guidance for sales or EPS, but it expects 2H24 sales to be slightly higher than 1H24.

*Excluding restructuring costs from non-GAAP EPS is a policy that I disapprove of because multinational, multifaceted businesses such as CAT have restructuring costs continually.

CAT is an AI play, says Barron’s:

https://www.barrons.com/articles/3-stocks-to-benefit-from-the-ai-datacenter-power-boom-7c07b498 Artificial-intelligence data centers will use much more electricity than their traditional counterparts, driving upgrades to electric-power infrastructure in a shift that offers opportunities for investors, according to Bernstein [analyst, Chad Dillard].

…Dillard said he expects Caterpillar and Cummins, which [make] both engines and power-generation equipment, to benefit as well. Each could pull in incremental revenue of more than $5 billion through 2030 as electric-power capacity is expanded. I previously posted that CAT’s mining-equipment business is a beneficiary of the transition to EVs (#msg-172040699), so CAT has a couple of “thematic” growth drivers in place.

Great news for this core holding of ours. Very positive.

CAT hikes dividend—increases buyback authorization:

https://finance.yahoo.com/news/caterpillar-inc-increases-dividend-increases-143000701.html

The new annualized dividend is $5.64 (up 8% from $5.20). At the current share price (~$330), the new payout equates to a dividend yield of 1.7%. CAT has increased its dividend for 30 consecutive years.

The new $20B buyback authorization, added to the $1.8B remaining from the $15B 2022 authorization (#msg-168886038), gives a total buyback authorization of $21.8B. If CAT implements the full buyback authorization and (for the sake of discussion) buys shares at an average equal to the current market price, the share count will be reduced by about 14%. However, there is no time limit on the buyback authorization.

Addendum re non-GAAP vs GAAP EPS:

Excluding restructuring costs from non-GAAP EPS is a policy that disapprove of because multinational, multifaceted businesses such as CAT have restructuring costs continually. In 1Q24, however, non-GAAP EPS came in slightly lower than GAAP EPS due to the exclusion from non-GAAP EPS of a one-time tax benefit.

CAT guided to lower 2Q24 sales compared to 2Q23 (see slide #17), and this is apparently what caused today’s rather sharp selloff.Additionally, CAT shares had had a big runup this year and the stock was recently trading near its all-time high.

CAT 1Q24 CC slides:

https://s25.q4cdn.com/358376879/files/doc_financials/2024/q1/1Q-2024-Analyst-Slide-Deck_Final-1.pdf

CAT reports 1Q24 results—shares_slide_on_soft 2Q24 guidance:

https://www.caterpillar.com/content/dam/caterpillarDotCom/releases/1q24/1q24-caterpillar-inc-financial-results.pdf

1Q24 sales were $15.8B, flat YoY, with price increases offsetting lower volume. Sales in the Construction and Resources Industries (mining equipment) segments were -5% and -7% YoY, respectively, while sales in the Energy & Transportation segment were +7% YoY. The E&T segment comprised 45% of CAT’s product sales in 1Q24.

1Q24 non-GAAP EPS was $5.60, up from $4.91 in 1Q23. 1Q24 GAAP EPS was $5.75 up/down from $3.74 in 1Q23.

CAT does not provide specific guidance for sales or EPS, but it expects full-year 2024 sales to be similar to 2023. However, CAT guided to lower 2Q24 sales compared to 2Q23 (see slide #17), and this is apparently what caused today’s rather sharp selloff.

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

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.

CAT new 52 hi

Cat Tractor is high tech

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

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

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.