Housing Re-Bubble Set to Re-Pop?
It's a swing and a miss for Caterpillar, the construction giant; TD has the details:
•Q1 EPS $1.31, Exp $1.38; this includes a tax benefit of $87 million
•Q1 revenue: $13.2 billion, Exp. $13.8 billion
•Guides much lower, with revenue now seen at $57-61 billion, compared to $60-68 billion previously
•CAT forecasts profit per share of $7.00, compared to $7.00-9.00 previously.
•Operating cash flow of $900MM, but all of it generated from net working capital, i.e., inventory liquidation
•And when you can't spend on capex, you spend on buybacks: CAT to extend buyback through 2015
Ben Bernanke might have to turn up the presses from Plaid all the way to Ludicrous Speed.
Keep blowing into that torn balloon, Uncle Ben.