Earnings Results: Caterpillar stock climbs into record territory after a big earnings beat

by | Aug 1, 2023 | Stock Market

Shares of Caterpillar Inc. rose into record territory Tuesday, after the construction- and mining-equipment maker beat Wall Street’s forecasts for second-quarter profit and revenue by wide margins, with each business segment showing double-digit percentage growth. “Our results continue to reflect healthy demand across most end markets for our products and services,” said Chief Executive Jim Umpleby on the post-earnings conference call with analysts, according to an AlphaSense transcript.

The stock
shot up 7.1% in morning trading, enough to pace the Dow Jones Industrial Average’s gainers
after closing Monday at a record $265.17. The stock’s price gain of $18.86 was adding about 124 points to the Dow’s price, while the Dow slipped 14 points, or 0.1%, with 23 of 30 components losing ground. Caterpillar reported before the opening bell net income that rose to $2.92 billion, or $5.67 a share, from $1.67 billion, or $3.13 a share, in the same period a year ago. Excluding nonrecurring items, such as an $88 million “discrete tax benefit,” adjusted earnings per share rose to a record $5.55 from $3.18 last year, and was well above the FactSet consensus of $4.57. Total revenue grew by $3.07 billion, or 21.6%, to $17.32 billion, which was 5.2% above the FactSet consensus of $16.46 billion. That beat percentage was the highest since first-quarter 2021 revenue beat expectations by 8.6%. Within Caterpillar’s business segments, energy and transportation revenue jumped 27% to $7.22 billion, which topped the FactSet consensus of $6.15 billion; construction indu …

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