These 2 Widely Held Stocks Went in Opposite Directions After Earnings

Caterpillar Inc. (NYSE:CAT) reported net income above Wall Street’s expectations for the third quarter. Net income for the farm and construction machinery company rose to $1.14 billion ($1.71 per share) vs. $792 million ($1.22 per share) in the same quarter a year earlier. This marks a rise of 44.1% from the year earlier quarter. Revenue  rose 41.2% to $15.72 billion from the year earlier quarter.  CAT reported adjusted net income of $1.93 per share. By that measure, the company beat the mean estimate of $1.59 per share. It beat the average revenue estimate of $15 billion.

“I am pleased with how we’re performing and optimistic about demand for our products, and that is why we are moving forward with needed investment in our business to support our long-term growth opportunities,” said Caterpillar Chairman and Chief Executive Officer Doug Oberhelman. “This was the best quarter for sales in our history, and our order backlog is at an all-time high.”

Competitors to Watch: Deere & Company (NYSE:DE), General Electric Company (NYSE:GE), Astec Industries, Inc. (NASDAQ:ASTE), Columbus McKinnon Corp. (NASDAQ:CMCO), Manitowoc Company, Inc. (NYSE:MTW), Cummins Inc. (NYSE:CMI), CNH Global N.V. (NYSE:CNH), Navistar Intl. Corp. (NYSE:NAV), Terex Corporation (NYSE:TEX), Joy Global (NASDAQ:JOYG) and Lindsay Corporation (NYSE:LNN).

 Kimberly-Clark Corporation (NYSE:KMB) reported its results for the third quarter. Net income for Kimberly-Clark Corporation fell to $432 million ($1.09 per share) vs. $469 million ($1.14 per share) a year earlier. This is a decline of 7.9% from the year earlier quarter. Revenue rose 8.1% to $5.38 billion from the year earlier quarter.  KMB reported adjusted net income of $1.26 per share. By that measure, the company fell in line with the mean estimate of $1.26 per share. Analysts were expecting revenue of $5.31 billion.

Chairman and Chief Executive Officer Thomas J. Falk said, “While we are not on track with all of our goals this year, I’m encouraged that execution of our Global Business Plan strategies enabled us to deliver four percent growth in organic sales and double-digit growth in adjusted earnings per share in the third quarter. Our focus on targeted growth initiatives, revenue realization and cost reduction allowed us to overcome significant input cost inflation and softer-than-expected demand in portions of the developed markets. Our market positions remain solid overall and our innovation and marketing programs are on track. We also continue to generate strong cash flow.”

Competitors to Watch: The Procter & Gamble Co. (NYSE:PG), Cardinal Health, Inc. (NYSE:CAH), Church & Dwight (NYSE:CHD), Colgate-Palmolive (NYSE:CL), Clorox (NYSE:CLX), Johnson & Johnson (NYSE:JNJ), Zep (NYSE:ZEP) and Avon Products (NYSE:AVP).