Caterpillar Earnings: CAT Stock Pops 1% Even After Q3 Miss

CAT missed EPS and revenue estimates for Q3

Caterpillar (NYSE:CAT) earnings for the construction equipment company’s third quarter of 2019 have CAT stock up on Wednesday. This is in spite of its per-share earnings of $2.66, which is below Wall Street’s estimate of $2.88 for the period. Revenue of $12.76 billion also misses analysts’ estimates of $13.57 billion.

Caterpillar Earnings: CAT Stock Pops 1% Even After Q3 Miss
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Now let’s take a more in-depth look at the most recent Caterpillar earnings report.

  • EPS was down 6.99% from 2.86 in the same period of the year prior.
  • Revenue comes in 6.00% lower YoY than $13.51 billion.
  • CAT says that the main reason for the decline in revenue was due to changes in dealer inventories.
  • Dealer inventories were down roughly $400 million during the third quarter of 2019.
  • For comparison, dealer inventories saw an $800 million increase in the third quarter of 2018.

Caterpillar Chairman and CEO Jim Umpleby says this about the current CAT stock earnings.

“Our volumes declined as dealers reduced their inventories, and end-user demand, while positive, was lower than our expectations. We remain focused on executing our strategy and continuing to achieve our Investor Day targets for margin improvement and free cash flow.”

More bad news in the Caterpillar earnings report is an update to its 2019 outlook. The company now expects earnings per share for the year to be between $10.90 and $11.40. The previous range was from $12.06 to $13.06. Unfortunately, Wall Street is looking for per-share earnings of $11.70 for the year.

CAT stock was up 1.28% as of Wednesday afternoon. It’s also up 5.82% since the start of the year.

As of this writing, William White did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2019/10/caterpillar-earnings-have-cat-stock-up/.

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