CAT Caterpillar Inc

By Andrew Tangel 

Caterpillar Inc. is due to report fourth-quarter earnings before the stock market opens on Thursday.

Here's what you need to know:

EARNINGS FORECAST: Wall Street analysts expect earnings per share of 66 cents, according to Thomson Reuters, compared with 74 cents the prior year. For all of 2016, analysts expect earnings per share of $3.26, down from $4.64 the prior year.

REVENUE FORECAST: Analysts expect Caterpillar to report $9.8 billion of revenue in the fourth quarter, down from $11 billion a year earlier. For all of 2016, analysts expect Caterpillar to report $38.9 billion, down from $47 billion in 2015.

NEW CEO: Thursday's earnings call will likely be the for the first time in the spotlight for Caterpillar's new chief executive, Jim Umpleby. The company's CEO typically leads the quarterly earnings call with analysts, and Mr. Umpleby's turn would come at a tough time for the world's largest maker of construction and mining equipment. Mr. Umpleby is taking over during a prolonged slump in Caterpillar's end-markets and a glut of inventory on the market. Mr. Umpleby succeeds Doug Oberhelman, who is slated to remain chairman of the of board until the end of March. Mr. Oberhelman held both the CEO and chairmanship roles, but Mr. Umpleby's won't. He is the first CEO in a quarter-century to run Caterpillar without control over the board as well, a shift that mirrors U.S. trends in corporate governance.

TRUMP WORLD: U.S. President Donald Trump's proposals on trade, taxes and infrastructure will have implications for Caterpillar. Executives could shed light on how proposed taxes or potential tariffs other other trade barriers could affect Caterpillar's exports. Mr. Trump has also threatened to punish companies that shift jobs abroad, and Caterpillar is in the midst of a restructuring that includes shifting jobs to Mexico, a frequent target for Mr. Trump. The U.S. dollar meanwhile has strengthened since Mr. Trump's election, making Caterpillar's products more expensive overseas. The company stands to win more domestic business, however, from a boost in construction spending if Mr. Trump succeeds in injecting $1 trillion into overhauling the country's ailing infrastructure.

SLIMMING DOWN: Caterpillar has been trimming its workforce as the company reels from a prolonged commodities slump and sluggish global growth. The company in recent years has announced rounds of layoffs, and investors are likely to get an update on its headcount. Caterpillar employed about 108,800 workers as of the end of September, down from 122,900 the previous year.

(END) Dow Jones Newswires

January 25, 2017 19:54 ET (00:54 GMT)

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