Caterpillar (NYSE: CAT) reported better than expected earnings and revenue on Wednesday.
The construction equipment giant Wednesday reported earnings of $2.94 per share vs. $2.85 per share, forecast in a survey of analysts. Revenue was $13.47 billion vs. $13.40 billion forecast.
In the year ago quarter, the company reported adjusted earnings per share of $2.82 on $12.9 billion in revenue.
The industrial giant also raised its 2019 profit outlook. Caterpillar said it now expects full year profit per share between $12.06 and $13.06, citing a tax benefit of 31 cents per share. Caterpillar said its first quarter tax benefit of $178 million stems from U.S. tax reform. The company previously expected $11.75 a share to $12.75 a share.
Sales in the Asia Pacific region grew 9% year over year to $3.20 billion.
In January, the stock plunged after Caterpillar reported disappointing fourth-quarter earnings. The equipment manufacturer, considered a proxy for the global economy, said tariffs and a slowdown in sales in China impacted profit.
For the full year, however, the company posted record profit of $11.22 a share, up 63% from a year earlier. Full-year sales also rose by 20%.
In February, UBS gave Caterpillar a rare double downgrade from "buy" to "sell," as analysts warned that an earnings decline in 2020 had not yet been priced into the stock.
The stock has since rebounded, however, and is up 12% so far in 2019. Over the past 12 months, it is down 7%.
Shares deteriorated $3.68, or 2.6%, to $138.35
