Caterpillar (CAT) is expected to report Q2 earnings on Thursday, July 22 before the market open with a conference call scheduled for 11:00 am ET.

GUIDANCE

Analysts are looking for EPS of 85c on revenue of $9.80B.  The consensus range is wide at 67c-$1.05 for EPS and revenue of $8.89B-$10.39B, according to First Call.  Caterpillar reported mixed results in Q1, beating EPS but missing revenue estimates.  On its Q1 conference call, the company raised its estimates for FY10, predicting EPS of $2.50-$3.25 vs. consensus of $3.29, and revenue of $38B-$42B vs. consensus of $38.92B.  Recent sentiment on the stock has been positive.

ANALYSTS' VIEWS

On June 28, Wells Fargo raised its FY10 EPS estimate for Caterpillar for the second time this quarter to $3.65 from $3.30, citing improving demand for the company’s products.  It maintained an Outperform rating on the shares.  On June 16, Jefferies initiated the stock with a Buy rating and a target price of $75.  On June 9, the company raised its quarterly dividend 5%, a strong signal of future growth.  Despite the positive news on Caterpillar, the stock has traded sideways in the past three months. Questions surrounding the economy in the second half of this year may be holding back any meaningful advance.