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Company Update (NYSE:CAT): Caterpillar to End Production of On-Highway Vocational Trucks

[PR Newswire] – PEORIA, Ill., Feb. 26, 2016 /PRNewswire/ — Caterpillar Inc. (CAT) today announced it will discontinue production of its on-highway vocational trucks. As a result of this action, the company will cease taking new orders for vocational trucks, although Caterpillar remains committed to existing truck customers and will support the existing trucks currently on the road. Caterpillar launched its first vocational truck in the North American market in 2011, working with Navistar on the products’ design and build. Read more on this. Caterpillar Inc. (CAT) , with a current market cap of $39.10B, opened this morning at $67.39. A quick look at the market, the company’s stock traded between $67.04 and $68.00 with its 52-week range being $56.36 to $89.62. Priced at 17.57x this year’s forecasted earnings, CAT shares are relatively expensive compared to the industry ’s 14.23x forward p/e ratio. And for income investors, the company pays shareholders $3.08 per share annually in dividends, yielding 4.58%. Consensus earnings for the current quarter by the 17 sell-side analysts covering the stock is an estimate of $1.04 per share, which would be $0.82 worse than the year-ago quarter and a $0.05 sequential increase. Furthermore, our analysis shows the full-year EPS estimate to be $3.75, which would be a $0.89 worse when compared to the last year’s annual results. The quarterly earnings estimate is based on a consensus revenue forecast of the current quarter of $10.76 Billion. If realized, that would be a 15.28% decrease over the year-ago quarter. More recently, Goldman downgraded CAT from Neutral to Sell (Jan 25, 2016). Previously, Deutsche Bank downgraded CAT from Buy to Hold. The average price target for CAT shares by the analysts covering it is $60.80, which is 9.78% below where the stock opened. See more in (NYSE:CAT) Similar Articles: Market Update: Caterpillar Inc (NYSE:CAT) – Caterpillar Announces Officer Retirement and Further Consolidation of Divisions Market Update: Caterpillar Inc (NYSE:CAT) – Caterpillar Announces New Responsibilities for Officers Market Update: Caterpillar Inc (NYSE:CAT) – Caterpillar to Participate in the Baird 2015 Industrial Conference on November 11; Webcast Available
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