Caterpillar Stock Drops on Q4 Revenue Miss
Key Highlights:
Performance Overview:
Caterpillar (NYSE: CAT) shares fell about 5% intraday on Thursday after the company reported fourth-quarter revenue below expectations. The construction equipment manufacturer posted revenue of $16.2 billion, a 5% year-over-year decline, missing analyst estimates from Visible Alpha.
Despite the revenue shortfall, Caterpillar delivered record earnings per share of $5.78, up from $5.28 a year earlier and exceeding analyst forecasts.
Segment Analysis:
Market Context and Reaction:
Caterpillar, often seen as a bellwether for both domestic and global economic trends, experienced a 5% drop in its stock price during Thursday's trading session. Despite this setback, Caterpillar shares remain up approximately 25% over the past 12 months, reflecting broader confidence in the company’s long-term performance amid fluctuating economic conditions.
Key Highlights:
- Revenue: $16.2 billion (-5% YoY), missing analyst expectations.
- Earnings per Share (EPS): Record high of $5.78, up from $5.28 and exceeding forecasts.
- Segment Performance:
- Construction Industries revenue fell 8% to $6 billion.
- Resource Industries revenue dropped 9% to $2.96 billion.
- Energy and Transportation revenue remained flat at $7.65 billion.
- Dealer Inventories: Declined by $1.3 billion, compared to a $900 million reduction a year ago.
Performance Overview:
Caterpillar (NYSE: CAT) shares fell about 5% intraday on Thursday after the company reported fourth-quarter revenue below expectations. The construction equipment manufacturer posted revenue of $16.2 billion, a 5% year-over-year decline, missing analyst estimates from Visible Alpha.
Despite the revenue shortfall, Caterpillar delivered record earnings per share of $5.78, up from $5.28 a year earlier and exceeding analyst forecasts.
Segment Analysis:
- Construction Industries: Revenue fell 8% to $6 billion, reflecting softer demand.
- Resource Industries: Revenue dropped 9% to $2.96 billion, impacted by declining sales of mining vehicles.
- Energy and Transportation: Revenue remained stable year-over-year at $7.65 billion.
Market Context and Reaction:
Caterpillar, often seen as a bellwether for both domestic and global economic trends, experienced a 5% drop in its stock price during Thursday's trading session. Despite this setback, Caterpillar shares remain up approximately 25% over the past 12 months, reflecting broader confidence in the company’s long-term performance amid fluctuating economic conditions.