Caterpillar (NYSE: CAT) smashed Wall Street's profit and sales estimates, driven by robust demand for its construction equipment in North America and China, and raised its full-year forecasts, sending its shares soaring.
Sales surged across all of the company's key businesses in the third quarter, including construction in China, on-shore oil and gas in North America and increased capital investments by mining customers.
The earth-moving equipment manufacturer said it now expects 2017 sales and revenue of $44 billion, up from its earlier forecast of $42 billion to $44 billion.
The company now expects adjusted earnings of $6.25 per share, up from the $5.00 it had previously forecast.
Profit attributable to common stockholders rose to $1.06 billion, or $1.77 per share, in the third quarter ended Sept. 30, from $283 million, or 48 cents per share, a year earlier.
Excluding restructuring costs, Caterpillar earned $1.95 per share, compared with 85 cents per share, a year earlier.
Total sales and revenue rose to $11.41 billion.
The company offers a wide range of financing alternatives to customers and Cat dealers for Cat machinery and engines, Solar® gas turbines, and other equipment and marine vessels. Cat Financial has offices and subsidiaries located throughout North and South America, Asia, Australia and Europe, with its headquarters in Nashville.
The stock hearkened to this news by climbing $7.77, or 5.9%, to a new 52-week intraday high of $139.45, towering over a 52-week low of $80.33
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