Caterpillar Earnings: Here’s Why Shares are Down Now

Caterpillar Inc. (NYSE:CAT) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 1.53%.

Caterpillar Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 42.91% to $1.45 in the quarter versus EPS of $2.54 in the year-earlier quarter.

Revenue: Decreased 15.85% to $14.62 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Caterpillar Inc. reported adjusted EPS income of $1.45 per share. By that measure, the company missed the mean analyst estimate of $1.70. It missed the average revenue estimate of $14.92 billion.

Quoting Management: “Cat Financial’s business continues to perform well as a result of continued growth in our earning assets,” said Kent Adams, Cat Financial president and vice president of Caterpillar Inc. “The global Cat Financial team remains focused on helping Cat customers and dealers succeed through financial services excellence.”

Key Stats (on next page)…

Revenue increased 10.68% from $13.21 billion in the previous quarter. EPS increased 10.69% from $1.31 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.97 to a profit $1.92. For the current year, the average estimate has moved down from a profit of $7.07 to a profit of $6.84 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)