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Caterpillar has cut its 2013 sales estimate by 8 per cent.
Caterpillar has cut its 2013 sales estimate by 8 per cent.
(SETH PERLMAN/AP)

Financial Times

A dead Cat bounce for heavy equipment maker?

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It says something about Wall Street estimates when a big, important company cuts its sales target to a level well below the analysts’ consensus – and the stock rises. This is what happened at Caterpillar on Monday. The maker of life-sized Tonka Trucks and industrial generators cut its 2013 sales estimate by 8 per cent, to $59-billion (U.S.) at the midpoint. The Street had wanted $63-billion. The stock rose 3 per cent.