Global industrial equipment manufacturer Caterpillar reported better than expected first quarter 2018 earnings before the market open Tuesday. $CAT machinary sales soared from construction and mining orders.
Global industrial equipment manufacturer Caterpillar $CAT reported better than expected first quarter 2018 earnings before the market open Tuesday. $CAT machinary sales soared from construction and mining orders.
$CAT reported net income of $1.67 billion, or $2.74 per share. This compares with $0.19 billion, or $0.32 per share, in last year’s first quarter. The results were ahead of analysts expectations of $2.07 per share, according to Thomson Reuters. Caterpillar’s revenue for the quarter rose 31.0% to $12.86 billion from $9.82 billion last year. Caterpillar full year EPS guidance: $10.25 – $11.25
Market Reaction > Caterpillar Inc. NYSE: $CAT
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Over that three-month rolling period of November to January
- Caterpillar reported a 34% machinery rise vs. a year earlier, including 23% in North America.
- $CAT had retail sales gains across every geographic region in its resources industries and construction businesses.
- Machine retail sales total were up across all regions over that time.
- Within construction, biggest gains were in the Asia-Pacific and Latin America region.
- Within resources, the Latin America and Europe, Middle East and Africa regions were the leaders
- Within Energy & Transportation segment sales were strong
- The only downturn was a 7% drop in sales in January within Caterpillar’s Power Generation category.
- The company added 10,900 jobs from a year earlier, bringing its worldwide total to 118,800.
“The combination of strength in many of our end markets and our team’s continued focus on operational excellence — including strong cost control — helped us deliver improved margins and a record first-quarter profit,” Caterpillar CEO Jim Umpleby said in a statement.
$Cat raised its 2018 profit outlook by $2 a share over the previous quarter, to a range of $10.25 to $11.25 per share. A Reuters analyst survey had expected a range of $8.39 to $10.60 a share. The company cited better-than-expected sales volume as the main driver of its improved full-year guidance.
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