Shares of Caterpillar (NYSE:CAT) dropped after the company posted second-quarter results that fell below analysts’ expectations.
Caterpillar earned $2.83 per share in the second quarter, versus consensus estimate of $3.12 per share. Revenue also disappointed with $14.432 billion reported compared to the $14.435 billion Wall Street analysts expected.
The heavy machinery manufacturer also lowered full-year earnings guidance to be at lower end of previous range of $12.06 to $13.06, short of the estimate of $12.24 per share.
During the second quarter of 2019, Machinery, Energy & Transportation (ME&T) operating cash flow was $2.0 billion. The company repurchased $1.4 billion of Caterpillar common stock and paid dividends of $0.5 billion in the second quarter of 2019. The enterprise cash balance at the end of the second quarter of 2019 was $7.4 billion
The company’s statement didn’t touch on the earnings and revenue miss with the executive trumpeting its financial operations.
"We were pleased with the performance of our portfolio and business during the quarter, reflecting good operational execution by the global Cat Financial team," said Cat Financial President Dave Walton.
"Sales and revenues increased this quarter, including a record performance from Construction Industries, which reflected our strong competitive position globally," CEO Jim Umpleby.
"Our strong operating cash flow in the quarter allowed us to repurchase shares and pay dividends of about $1.9 billion. This is in line with our intention to return substantially all free cash flow to shareholders."
Shares of CAT tumbled $7.28, or 5.3%, first thing Wednesday morning, to $130.82
