Caterpillar | $CAT Stock | Shares Pop On Q2 Earnings & Rosy Full-Year Guidance

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Caterpillar, Inc. (NYSE: CAT)

 

Shares of Caterpillar rallied marginally in early hours of regular trading on Monday, following upbeat second-quarter earnings and rosy guidance.

In premarket trading, the shares climbed 3.1% as investors eagerly waited for the machinery maker to announce its results for the three months ended June 30, 2018.

Caterpillar plans to increase the prices of some of its products in order to cope with the recently imposed tariffs, which are expected to go up by about $100 million to $200 million in the third and fourth quarters of 2018.

CAT Earnings & Outlook

caterpillar stock chart

The company reported net income of $1.71 billion, or $2.82 per share, compared to $802 million, or $1.35 per share, in the second quarter of the previous year a year ago. After stripping amortization expenses and special items, the company earned $2.97 per share.

Net sales came in at $14.01 billion for the quarter, compared to $11.33 billion in the same period last year. Analysts were expecting the machinery maker to report adjusted earnings of $2.73 per share on net sales of $13.89 billion.

Its Construction Industries segment, recorded net sales of $6.17 billion, up 24% and ahead of analyst consensus of $6.01 billion. The Energy and Transportation segment posted net sales of $5.72 billion, an increase of 20% and above estimates of $4.95 billion.

Looking ahead, the company expects its full-year adjusted earnings per share outlook in the range of between $11 and $12 from the previous guidance of $10.25 to $11.25. Analysts expect the company to report earnings of $10.76 per share.

Caterpillar CEO Comments

Commenting on the results, Caterpillar Chief Executive Officer Jim Umpleby said: “Caterpillar delivered record second-quarter profit per share. Our team is doing a great job executing our strategy for profitable growth, focusing on operational excellence, expanded offerings and services.”

“Based on outstanding results in the first half of the year and continued strength in many of our end markets, Caterpillar is again raising our profit outlook for 2018. We remain focused on operational excellence, cost discipline and investing for long-term profitable growth,” concluded Umpleby.

Caterpillar, Inc. Company Profile

Caterpillar, Inc. is engaged in the manufacture of mining and construction equipment, natural gas and diesel engines, diesel-electric locomotives, and industrial gas turbines.

It operates through the Construction Industries, Energy and Transportation, Resource Industries, Financial Products, and All Other segments.

The Construction Industries segment is responsible for supporting customers using machinery in building and infrastructure construction applications.

The Energy and Transportation segment supports customers in gas and oil, rail, power generation, industrial, and marine applications.

The Resource Industries segment supports customers using machinery in quarrying and mining applications.

It includes product design, product development and management, business strategy, marketing, manufacturing, product support and sales.

The Financial Products segment provides a variety of financing alternatives to dealers and customers for Caterpillar engines and machinery, solar gas turbines, as well as marine vessels and other equipment.

The All Other segment covers activities such as; product development and management; business strategy, and manufacturing of fluids and filters, rims and tires, undercarriage, fluid transfers, and engaging tools. Caterpillar, Inc was founded in 1925 and is based in Deerfield, Illinois. –YahooFinance

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