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Caterpillar Inc. (CAT - Free Report) is a world renowned name in the construction and mining machinery industry with a market capitalization of $77.8 billion. Caterpillar has long been considered a bellwether of national and global economic strength
Ahead of its third quarter earnings release, Caterpillar reported a 13% rise in global retail sales for the three months ended Sep 2017, with improvement noted across all regions. This upbeat growth figure follows a 12% rise in July and 11% increase in August, averaging 12% for the third quarter. The improvement continues to be driven by the Asia-Pacific region and the construction sector. Notably, the Resource Industries has also picked up lately.
Lately, the construction sector in Asia Pacific has shown promise while the leading indicators of U.S. non-residential construction signal robust conditions ahead. This, along with Caterpillar’s incessant efforts to cut down costs helped the behemoth deliver a turnaround this year. Last year, its results had been battered by the weak mining industry, low oil prices, stronger U.S. dollar and China's economic woes.
Investors are thus awaiting Caterpillar’s results to see whether the solid momentum in the first half of the year will be carried forward in the third quarter as well. Let’s have a quick look at the third quarter release of this Peoria, Illinois-based construction and mining equipment manufacturer.
Estimate Trend & Surprise History
Investors should note that over the last 30 days, the Zacks Consensus Estimate for the third quarter has moved up 3% for Caterpillar. Coming to the earnings surprise, Caterpillar has an impressive track record, beating the Zacks Consensus Estimate in all of the last four quarters, with an average positive surprise of 41.4%.
Caterpillar surpassed the Zacks Consensus Estimate by a wide margin of 60%. Analysts polled by Zacks were expecting earnings per share (EPS) of $1.22 while the company reported adjusted EPS of $1.95. Higher sales volume and focus on cost discipline led to the improved results.
Revenues Beat Estimates
Caterpillar reported revenues of $11, 413 million, also ahead of the Zacks Consensus Estimate of $10,609 million.
Developments to Note
Given the strong performance in the quarter, Caterpillar now expects revenues to be around $44 billion in 2017, up from the previous projected range of $42 to $44 billion. Caterpillar also raised its adjusted earnings per share guidance to $6.25 from the prior projection of $5.00.
Zacks Rank
Currently, Caterpillar has a Zacks Rank #2 (Buy). However, this could change following Caterpillar’s earnings report which was just released.
Market Reaction
Caterpillar shares gained 7.54% in pre-market trading.
Check back later for our full write up on this Caterpillar earnings report later!
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Caterpillar's (CAT) Cost Discipline Drives Q3 Earnings Beat
Caterpillar Inc. (CAT - Free Report) is a world renowned name in the construction and mining machinery industry with a market capitalization of $77.8 billion. Caterpillar has long been considered a bellwether of national and global economic strength
Ahead of its third quarter earnings release, Caterpillar reported a 13% rise in global retail sales for the three months ended Sep 2017, with improvement noted across all regions. This upbeat growth figure follows a 12% rise in July and 11% increase in August, averaging 12% for the third quarter. The improvement continues to be driven by the Asia-Pacific region and the construction sector. Notably, the Resource Industries has also picked up lately.
Lately, the construction sector in Asia Pacific has shown promise while the leading indicators of U.S. non-residential construction signal robust conditions ahead. This, along with Caterpillar’s incessant efforts to cut down costs helped the behemoth deliver a turnaround this year. Last year, its results had been battered by the weak mining industry, low oil prices, stronger U.S. dollar and China's economic woes.
Investors are thus awaiting Caterpillar’s results to see whether the solid momentum in the first half of the year will be carried forward in the third quarter as well. Let’s have a quick look at the third quarter release of this Peoria, Illinois-based construction and mining equipment manufacturer.
Estimate Trend & Surprise History
Investors should note that over the last 30 days, the Zacks Consensus Estimate for the third quarter has moved up 3% for Caterpillar. Coming to the earnings surprise, Caterpillar has an impressive track record, beating the Zacks Consensus Estimate in all of the last four quarters, with an average positive surprise of 41.4%.
Caterpillar, Inc. Price and EPS Surprise
Caterpillar, Inc. Price and EPS Surprise | Caterpillar, Inc. Quote
Earnings Beat Estimates
Caterpillar surpassed the Zacks Consensus Estimate by a wide margin of 60%. Analysts polled by Zacks were expecting earnings per share (EPS) of $1.22 while the company reported adjusted EPS of $1.95. Higher sales volume and focus on cost discipline led to the improved results.
Revenues Beat Estimates
Caterpillar reported revenues of $11, 413 million, also ahead of the Zacks Consensus Estimate of $10,609 million.
Developments to Note
Given the strong performance in the quarter, Caterpillar now expects revenues to be around $44 billion in 2017, up from the previous projected range of $42 to $44 billion. Caterpillar also raised its adjusted earnings per share guidance to $6.25 from the prior projection of $5.00.
Zacks Rank
Currently, Caterpillar has a Zacks Rank #2 (Buy). However, this could change following Caterpillar’s earnings report which was just released.
Market Reaction
Caterpillar shares gained 7.54% in pre-market trading.
Check back later for our full write up on this Caterpillar earnings report later!
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>