Caterpillar, a bellwether for the global economy, reported fourth-quarter earnings early Tuesday that fell short of analyst expectations. Sales easily beat Wall Street estimates, but EPS took a 41-cent foreign currency hit. The Dow Jones construction and mining equipment giant offered bullish comments for 2023 but didn't offer specific guidance. CAT stock, which has been on fire since the start of October, fell in early stock market action.
"Our global team delivered one of the best years in our nearly 100-year history, including record full-year adjusted profit per share," CEO Jim Umpleby said in a statement.
Caterpillar Earnings
Estimates: Analysts expected Caterpillar earnings to rise 49% to $4.02 per share in Q4. Revenue was seen growing 16% to $16.04 billion.
Results: Caterpillar earnings per share grew 43.5% to $3.86. Revenue climbed 20.3% to $16.6 billion.
Outlook: Caterpillar said it expects 2023 sales to rise, supported by favorable pricing and stronger sales to end users. Price increases should more than offset manufacturing costs. Capex is expected to be around $1.5 billion.
Before the Q4 report, Wall Street analysts were expecting Caterpillar earnings per share of $15.41 in 2023, which would be 10.5% above 2022 consensus estimates.
CAT Stock
CAT stock lost 4.2% to 250.41. before the open on Tuesday. On Monday, CAT stock fell 1.1% to 261.50. Through Monday's close, CAT stock had soared 59% since Sept. 30, rising to an all-time high.
Caterpillar stock is out of buy range after breaking out from a 239.95 buy point from a flat base. The buy zone runs through 251.95. Still, CAT stock isn't overly extended, just 8% above its 50-day line.
CAT stock is part of the IBD Leaderboard portfolio of elite stocks.
