Caterpillar Inc Down 4.95% To $185.33 After Earnings Beat

Tuesday, August 2, 2022 - Caterpillar Inc (CAT) reported upside earnings and downside revenues.

Caterpillar Inc's earnings came in at an EPS of $3.18 per share, 6.00% higher than estimates for an EPS of $3.01 per share. The firm's earnings are up 22% since reporting $2.6 per share in the same period a year ago. Remember, earnings reported were on an adjusted basis, so they may not be comparable to prior reports and/or analyst estimates.

Consensus estimates for Caterpillar Inc revenue averaged out to $14.4 billion, with the business missing on those expectations with reported second-quarter revenue of $14.2 billion. The $133 million (1%) negative revenue surprise led to 11% growth year-over-year as the firm reported revenue of $12.9 billion in its year-ago quarter. The higher earnings growth compared to revenue points to Caterpillar Inc improving its profit margin.

The stock is down 4.95% to $185.33 after the report.

Caterpillar Inc's earnings expanded faster than revenues, signaling widening profit margins.

Wall Street Analysts had an average rating of Buy on the stock prior to the report.

InvestorsObserver gives the stock a Bullish Sentiment score at the moment based on recent trading.

Prior to the report, InvestorsObserver gave the stock an overall score of 44. Meanwhile, the average Wall Street analyst rated the stock a Buy.

Caterpillar is an iconic manufacturer of heavy equipment, power solutions, and locomotives. It is currently the world's largest manufacturer of heavy equipment with over 13% market share in 2021. The company is divided into four reportable segments: construction industries, resource industries, energy and transportation, and Caterpillar Financial Services. Its products are available through a dealer network that covers the globe with about 2,700 branches maintained by 160 dealers. Caterpillar Financial Services provides retail financing for machinery and engines to its customers, in addition to wholesale financing for dealers, which increases the likelihood of Caterpillar product sales.