Market Overview

Caterpillar's Profit Up, Tops Estimates


For the third quarter, Caterpillar (NYSE: CAT) saw a rise in net income, beating Wall Street expectations. To gain insight into why the company reported as it did, investors might review the company's industry, financials, and commentary.

Earnings and Revenue:
Investors cheered Caterpillar's latest numbers as the company announced EPS and revenues that topped predictions. The company reported adjusted net income of $1.93/share versus the $1.59/share estimate and revenues of $15.72 billion versus the $15 billion estimate. Revenue climbed 41.2% from the same period last year.
Last quarter marked the third in a row of rising net income. Caterpillar has averaged revenue growth of 50% over the past five quarters.

For the year, Caterpillar reported net income of $6.96/share. The company trumped analyst projections of $5.90 by 18%. According to the reported number, the company's income rose 44.1% from last year's levels.

Conference Call:
The conference call for third quarter earnings can be accessed here.

Official Comment:
"I am pleased with how we're performing and optimistic about demand for our products, and that is why we are moving forward with needed investment in our business to support our long-term growth opportunities," said Caterpillar Chairman and Chief Executive Officer Doug Oberhelman. "This was the best quarter for sales in our history, and our order backlog is at an all-time high."

The machinery-construction company's industry is currently enjoying price/earnings growth of 1%.

What to Do Next:
That's it -- now you have all the facts to help you decide whether to buy, sell or hang onto your Caterpillar shares. And don't forget to check in with us before next earnings season for a full preview of the company's next release.

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Posted-In: Earnings News After-Hours Center