© Stocksak. Analyst Reflects Positively on Caterpillar’s (CAT) Gains After Q3 Beat
By Senad Karaahmetovic
Shares of Caterpillar Pre-market Thursday, (NYSE:), saw shares trade 4.5% higher after the company reported very strong results.
Caterpillar beat the analyst estimate of $3.17 by posting a Q3 EPS figure of $3.95. The quarter’s total revenue was $15 billion. This is higher than the consensus estimate which was $14.15 trillion. Revenue in the Machinery, Energy & Transportation segment soared 22% to fuel the beat.
Operating income rose 46% year-overyear to $2.41 trillion, easily surpassing the consensus of $2.01 billion. The company claimed it returned $2 billion to shareholders through share buybacks, dividends, and other means.
“I would like to thank our global Caterpillar staff for delivering another quarter with double-digit top line growth and record adjusted profit, per share,” stated Chairman and CEO Jim Umpleby. “Our team continues to be focused on serving customers as we continue to see healthy demand in most end markets during the third-quarter.”
Analysts at Goldman Sachs highlighted the fact that accelerating pricing was a key driver of the Q3 beat.
“Demand indicators were mixed, with strong orders and Energy & Transportation retail sales balanced by unseasonal build in dealer inventories and softer Construction Industries retail sales,” they added in a note.