Caterpillar (CAT) – Get a free report stocks rose steadily in early trading Monday after the industrial equipment maker posted stronger-than-expected fourth-quarter earnings driven by a big jump in energy and transportation sales.
Adjusted earnings for the three months ended in December were $5.23 per share, up nearly 35.5% from the same period in 2022 and well above the Wall Street consensus forecast of $4.75. per share.
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The group's revenue, Caterpillar said, rose 3% to $17.1 billion, essentially matching analyst estimates, while its adjusted operating profit margin widened to 18.9% for the quarter, compared with the 17% registered a year before.
Caterpillar people “delivered the best year in our 98-year history, including record full-year sales and revenue, record adjusted earnings per share and record free cash flow (machines, energy and transportation),” the CEO said. Jim Umpleby. “We remain committed to serving our customers, executing our strategy and investing for long-term profitable growth.”
Shares of Caterpillar, a Dow component, rose 4.3% in premarket trading to indicate an opening price of $328.50 each, a move that would extend the stock's six-month gain to about 17%.
Caterpillar sales by division
Construction sales fell 5% from a year earlier to $6.52 billion, Caterpillar said, “driven by the impact of changes in dealer inventories, partially offset by higher equipment sales to end users.”
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Resources industry sales fell 6% to $3.24 billion thanks to “lower sales volume, partially offset by obtaining favorable pricing,” Caterpillar said. “The decrease in sales volume was driven by the impact of changes in dealer inventories and lower replacement parts sales volume.”
Energy and Transportation increased 12% from a year ago to $7.67 billion, “primarily due to higher sales volume and favorable price realization.”
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