Caterpillar smashes expectations, shares jump 6%
Construction equipment maker Caterpillar reported first quarter results that smashed Wall Street’s expectations, sending its share price up by 6%. Stripping out restructuring costs, the company reported earnings of $1.28 per share, against expectations of 62¢, according to a survey of analysts by Zacks Investment Research. Revenue rose from $9.46 billion to $9.82 billion, easily beating the $9.36 billion that investors expected.
Caterpillar’s share price is up 11% over the month
SOURCE: Yahoo Finance
Caterpillar’s chief executive officer, Jim Umpleby, said:
"Our team delivered outstanding operational performance and, for the first time in more than two years, same quarter sales and revenues increased. We're also benefiting from our significant cost reduction and restructuring actions, which have improved cash flow and further strengthened an already healthy balance sheet. With this momentum, we will continue to focus investment on improving our competitive position by investing in new technologies and improving our productivity to deliver profit growth and shareholder value."
As a result of this positive set of figures, the company has raised its outlook for the year. For 2017, Caterpillar now expects to return adjusted earnings of $3.75 per share, with revenues between $38 billion and $41 billion. Previously, the company expected to deliver around $2.90 earnings per share from revenues between $36 billion and $39 billion. Analysts polled by Factset are expecting earnings of $3.25 per share on revenue of $37.9 billion.
Dominion holds Caterpillar in its Global Trends Managed Fund.
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