Home News Caterpillar Stock Hits New High After Better-Than-Expected Q4 Earnings

Caterpillar Stock Hits New High After Better-Than-Expected Q4 Earnings

by SuperiorInvest

Key takeaways

  • Caterpillar reported fourth-quarter adjusted earnings per share of $5.23, well above Wall Street expectations of $4.75.
  • Revenue in the quarter rose 3% to $17.1 billion, led by a 12% increase in the company’s energy and transportation business.
  • The company expects first quarter revenue to be very similar to that recorded in the first three months of 2023.
  • The company’s shares rose as high as $334.87 early Monday, an all-time intraday high.

Shares of Caterpillar (CAT) hit new all-time highs in early trading Monday after the industrial equipment maker reported earnings that beat Wall Street expectations.

The company posted adjusted earnings per share of $5.23, up from $3.86 a year earlier and well above Wall Street analysts’ consensus view of $4.75 per share. Revenue for the fourth quarter of 2023 was $17.1 billion, up 3% from the same period a year ago and roughly in line with expectations.

Caterpillar’s Energy and Transportation business led revenue gains for the company, with sales increasing 12% to $7.7 billion in the fourth quarter. Sales in the construction industries fell 5% to $6.5 billion, while those in the resource industries fell 6% to $3.2 billion.

Caterpillar said new retail business in the latest quarter was $3.6 billion, an increase of 30% from a year ago, driven primarily by higher volume in North America.

The company said it expects sales and revenue in the current quarter to be “broadly similar to the first quarter of 2023.” The company also expects “favorable price realization and slightly lower machine inventory build at the dealer.” The first-quarter adjusted operating profit margin is also likely to be similar to a year ago, Caterpillar said in its earnings presentation.

In the first quarter of last year, Caterpillar’s revenue was $15.9 billion and its operating profit margin was 17.2%.

Caterpillar shares rose 1.1% to $318.52 around 11:15 a.m. ET after rising as high as $334.87 earlier in Monday’s session.

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