Caterpillar (CAT) – Get Free Report posted much stronger-than-expected third quarter earnings Tuesday, thanks in part to higher construction equipment demand linked to the ongoing support from government infrastructure spending.
Caterpillar said adjusted profits for the three months ending in September were pegged at $5.52 per share, up nearly 40% from the same period last year and well ahead of the Street consensus forecast of $4.79 per share.
Group revenues, Caterpillar said, rose 12.1% to $16.8 billion, a figure that topped analysts’ estimates of a $16.52 billion tally. Operating profit margin was 20.5% for the quarter, well ahead of the 16.2% tally recorded last year but down from 21.1% over the three months ending in June.
“I’d like to thank our global team for delivering another great quarter, as demonstrated by double-digit top-line growth, strong adjusted operating profit margin and robust ME&T free cash flow,” said CEO Jim Umpleby. “We remain focused on supporting our customers’ success and executing our strategy for long-term profitable growth.”
Caterpillar shares were marked 3.25% higher in pre-market trading immediately following the earnings release to indicate an opening bell price of $250.00 each.
Construction sales were up 19% to $3.35 billion, Caterpillar said, “driven by the impact from changes in dealer inventories and higher sales of equipment to end users.”
Resource, energy and transportation sales were up 27% to $7.23 billion thanks to “primarily due to higher sales volume and favorable price realization.
Get investment guidance from trusted portfolio managers without the management fees. Sign up for Action Alerts PLUS now.
