Earnings Season Heats Up With CAT, AMD, and SPCX
Caterpillar is set to report its second-quarter earnings before the market opens on Tuesday, amidst a tumultuous period for the stock. The company has been one of the top-performing Dow Jones stocks this year, with shares rising over 41% due to strong demand from its power energy segment, which supplies artificial intelligence data centers.
However, Caterpillar's stock took a hit when Baird analyst Mircea Dobre cut his rating to Hold from Buy and slashed his price target to $900 from $1,200. Dobre cited rising regulatory opposition to AI data centers as the reason for his downgrade, pointing to the recent New York State moratorium on data center construction.
Wall Street expects Caterpillar to post earnings of $6.20 per share for the second quarter, a 31.4% increase year-over-year, on revenue of $19.2 billion, representing 15.7% year-over-year growth.
Advanced Micro Devices (AMD) is also set to report after Tuesday's close, with analysts expecting earnings of $1.61 per share, up sharply from 48 cents per share in the year-ago period. Revenue for AMD is forecast to reach $11.3 billion, representing a 47% year-over-year increase.
Susquehanna analyst Christopher Rolland anticipates 'better earnings and guidance' for AMD, pointing to market share gains from its MI350 GPU and EPYC CPU, as well as longer-term AI growth supported by its more advanced Helios and MI450 chips and hyperscale customers including Anthropic and Meta.
SpaceX will deliver its first earnings report as a publicly traded company after Tuesday's close, following its record-shattering initial public offering. Morgan Stanley analyst Adam Jonas flagged revenues, EBITDA, Starlink subscriber counts, ARPU, AI pricing, and Cursor annual recurring revenue as key metrics for investors to watch.
Jonas noted that SPCX stock is currently trading 50% below its all-time high and 20% below its IPO price, which he described as a central concern for investors at this stage. Analysts are calling for SpaceX to report revenue of $6.8 billion alongside a per-share loss of 29 cents for the quarter.