Caterpillar (CAT) has just released its third-quarter 2021 results. Revenue increased, although came in slightly below analyst forecasts of $12.46 billion. Pre-market today, CAT stock gained 1.94% in value.
Demand for Heavy Equipment Boosts Q3 Earnings, Beating Market Expectations
Like many companies, Caterpillar has had to deal with supply chain worries. Nevertheless, the ongoing need for heavy equipment in construction and other sectors saw the demand for Caterpillar’s products remain strong. This machinery demand helped the company perform better as far as earnings are concerned, beating Q3 forecasts.
Third-quarter 2021 adjusted profit per share came in at $2.66, reflecting “strong operational performance and a lower-than-expected effective tax rate,” according to CAT. In 2020, the third-quarter adjusted profit per share was $1.52.
CEO Comments
“Our global team continues to execute our long-term strategy for profitable growth while working to mitigate supply chain challenges as we serve our customers,” CEO Jim Umpleby remarked. “Our third-quarter results reflect higher sales and revenues across our three primary segments and in all regions.” The company also reported returning $2.0 billion to its shareholders through dividends and share repurchases during the quarter.