Caterpillar Shares Slip On Q2 Revenue Miss; Registers 11% Revenue Growth

Caterpillar Shares Slip On Q2 Revenue Miss; Registers 11% Revenue Growth
  • Caterpillar Inc CAT reported second-quarter FY22 sales and revenue growth of 11% year-over-year to $14.25 billion, missing the consensus of $14.38 billion.
  • Adjusted EPS was $3.18, beating the consensus of $3.01.
  • Revenue growth was driven by favorable price realization and higher sales volume.
  • Segment Revenue: Construction Industries $6.03 billion (+7% Y/Y), Resource Industries $2.96 billion (+16% Y/Y), and Energy & Transportation $5.71 billion (+15% Y/Y).
  • Financial Products segment revenue increased by 2% Y/Y to $708 million.
  • CAT returned $1.7 billion to shareholders through share repurchases and quarterly dividends.
  • Operating profit increased 9% Y/Y to $1.944 billion. Operating profit margin was 13.6%, compared with 13.9% in 2Q21.
  • Caterpillar generated cash from operating activities year-to-date of $2.55 billion, compared to $4.05 billion a year ago. It ended the quarter with $6.02 billion of cash and equivalents.      
  • Outlook: Caterpillar expects 3Q22 sales to increase from higher sales to users and price realization.
  • The company expects the adjusted operating profit margin to improve in the second half of 2022.
  • Price Action: CAT shares are trading lower by 2.97% at $189.08 on the last check Tuesday.­­
  • Photo Via Company

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