Caterpillar Tops Profit Estimates, Cuts Outlook

It cited a worse-than-expected global economy during this year

   

Caterpillar (NYSE:CAT) announced on Monday that it earned $1.7 billion during the third-quarter, up 49% from $1.14 billion in the same period last year. EPS came in a $2.54 a share, handily beating Wall Street, which expected earnings of $2.21 a share, the Associated Press noted.

For the quarter, the Peoria, Illinois-based company recorded revenue of $16.45 billion, up 4.6% from 2011, but falling short of the $16.64 billion that analysts had predicted.

Caterpillar CAT tractor 630 flickr 200x200 Caterpillar Tops Profit Estimates, Cuts Outlook
For Caterpillar, It’s All Downhill

Calling this year’s economic conditions in the U.S., China and Europe a “disappointment,” company officials lowered their earnings guidance for the full year to between $9 and $9.25 a share. They anticipate revenue of $66 billion for 2012. The new guidance disappointed analysts who had estimated earnings of $9.41 a share on revenue of $67.2 billion.

Looking forward, 2013 revenue was estimated at somewhere between 5% higher or 5% lower than 2012, due to a continued soft global economy. Company officials did not foresee a renewed global recession in the coming year, however.

Shares of Caterpillar slipped fractionally in early Monday trading.


Article printed from InvestorPlace Media, http://investorplace.com/2012/10/caterpillar-tops-profit-estimates-cuts-outlook/.

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