Caterpillar 4Q sales slip, but results top Wall Street
FILE - In this Sept. 18, 2019, photo a Puckett Machinery Company technician walks past a new heavy duty Caterpillar excavator that awaits modification at Puckett Machinery Company in Flowood, Miss. The Deerfield, Illinois, company reported a profit Tuesday, Oct. 27, 2020, of $1.22 per share. Sales were $11.24 billion, down significantly from last year's $13.14 billion, yet far better than Wall Street projections of $11.18 billion, according to a survey of analysts by Zacks Investment Research. That is still well below the $1.1 billion, or $1.97 per share, that the company earned in the prior year. The Commerce Department reported Thursday that the U.S. economy shrank in 2020 by the largest amount in 74 years, and the Labor Department reported that 847,000 Americans applied for unemployment benefits last week.
Caterpillar reports a 54% drop in earnings in the third quarter amid lower equipment demand
Industrial machinery manufacturer Caterpillar on Tuesday reported a 54% drop in earnings in the third quarter as equipment sales declined across all regions and segments. The Dow component posted better-than-expected adjusted earnings per share of $1.34 on revenue of $9.9 billion in the quarter. Its third-quarter sales marked a 23% decline year over year and profit per share dropped 54% compared to the same quarter a year ago. Caterpillar said the sales decline was primarily due to lower sales volume driven by lower end-user demand for equipment and services and the impact from decreases in dealer inventories. In the second quarter, Caterpillar's profit dropped 70% year over year to $1.03 as the coronavirus-triggered recession slashed demand for equipment.cnbc.com
Caterpillar earnings top expectations, but CEO warns about 'global economic uncertainty'
Caterpillar on Friday reported a revenue miss in the fourth quarter, citing "global economic uncertainty." The industrial giant's quarterly earnings came in at $2.63 per share adjusted, compared with an estimate of $2.37 in a Refinitiv survey of analysts. Chairman and CEO Jim Umpleby noted persisting risks around the world that weighed on the company's revenue. "We expect continued global economic uncertainty to pressure sales to users in 2020 and cause dealers to further reduce inventories," Umpleby said in a statement. "We have improved our lead times and remain prepared to respond quickly to any positive or negative changes in customer demand."cnbc.com
Caterpillar reports earnings that badly miss the Street, cuts forecast again
Shares of Caterpillar plunged in early trading on Wednesday after the company slashed its full-year outlook and posted disappointing third-quarter earnings. The company blamed the dismal results on a reduction in inventories from dealers. The company also lowered its full-year earnings per share forecast to a range of $10.59 and $11.09 from $12.06 and $13.06 a share. The Deerfield, Illinois-based company said dealers decreased inventories by about $400 million in the third quarter. Shares of the trade bellwether are underperforming the broader market this year as as global trade tensions continue to weigh.cnbc.com
Earnings season has reached 'maximum disorientation,' Jim Cramer says
CNBC's Jim Cramer on Wednesday said earnings season has reached the point of "maximum disorientation." Caterpillar's sales came in at roughly $12.7 billion in its third quarter, well short of the $13.4 billion that analysts estimated, according to FactSet. CEO Jim Umpleby, he noted, pledged to mitigate Caterpillar's episodic business model that made it a tough industrial stock to own. Although it lost more than 5.16% of value during the trading day, Chipotle's shares are up more than 82% this year. "When I look over that quarter, I think you're being given a rare buying opportunity here," Cramer said.cnbc.com