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Caterpillar shares boosted by improved prospects for U.S. non-residential construction
David Mcnew/Getty Images
Investors will find out on Tuesday whether all the new laws and investment spending in the US are boosting demand for construction equipment.
caterpillar
(Ticker: CAT) will report its fourth quarter numbers on Tuesday morning. Wall Street expects his earnings per share of $4.02 from $15.8 billion in sales. A year ago, Cat reported $2.69 per share from her $13.8 billion in sales.
caterpillar
The stock closed 2.8% lower in Monday trading ahead of the results.of
S&P 500
When
Dow Jones Industrial Average
They were down 1.3% and 0.8% respectively.
It’s been a weak day, but investor optimism is still built into the stock.Investors are optimistic that spending related to tipping laws, anti-inflation laws and President Biden’s infrastructure plans will boost US construction sales
Melius analyst Scott Davis tracks more than $250 billion in planned investment spending for the US announced over the past few years. With total non-residential construction spending in the United States reaching about $1 trillion a year, the extra boost from these laws could make sense.
Cat will host a conference call at 8:30 AM ET to discuss the results. Investors will want to hear about construction prospects, as well as prospects for the mining and energy industries.
The options market suggests that Cat stock will move up or down about 5% following earnings. Shares rose 7.7% after the company released its third-quarter numbers.
Please contact Al Root (allen.root@dowjones.com).
