Cat Stock Surges After Strong Q3 Earnings
The industrial giant posted sales of $17.64 billion, up 10% from $16.1 billion a year ago, beating analyst estimates of $16.77 billion, as per a Benzinga report. Adjusted earnings per share came in at $4.95, ahead of the $4.52 expected, though slightly below last year’s $5.17, as per the report. GAAP profit per share was $4.88, compared with $5.06 in the same period last year, as per the report.
CEO Joe Creed said that, “Solid performance from our team generated strong results this quarter, driven by resilient demand and focused execution across our three primary segments,” adding, “Our team’s continued discipline in a dynamic environment, coupled with a growing backlog, positions us for sustained momentum and long-term profitable growth,” as quoted by Benzinga.
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Caterpillar’s Mixed Segment Performance
Segment performance varied. Construction Industries saw revenue rise 7% to $6.76 billion, though profit fell 7% to $1.38 billion due to higher manufacturing costs and unfavorable price realization, as per the rpeort. Resource Industries revenue rose 2% to $3.11 billion, while profit dropped 19% to $499 million from higher input costs and pricing pressure, as per the Benzinga report.
Energy & Transportation Leads Caterpillar’s Growth
The standout was Energy & Transportation, with sales climbing 17% to $8.39 billion and profit rising 17% to $1.68 billion, due to higher volume and price realization across oil and gas, power generation, industrial, and transportation, as per the Benzinga report. Financial Products revenue increased 4% to $1.08 billion, though profit slipped 2% to $241 million due to higher credit loss provisions and SG&A expenses, as per the Benzinga report.ALSO READ: Fed interest rate decision today: 25 bps cut from Powell and co? Here’s what to watch
Caterpillar’s Strong Cash Flow and Shareholder Returns
Caterpillar generated $3.7 billion in operating cash flow for the quarter and ended the period with $7.5 billion in cash and short-term investments, as per the Benzinga report. The company returned $1.1 billion to shareholders, including $700 million in dividends and $400 million in share repurchases, as per the Benzinga report.
Caterpillar’s Outlook for 2025
Benzinga reported that, Caterpillar expects full-year 2025 sales to be modestly higher than 2024, with services revenues roughly flat. Tariff costs for the year are expected between $1.6 billion and $1.75 billion. Excluding tariffs, adjusted operating profit margin is projected in the top half of the annual target range; including tariffs, it is expected near the bottom, as per the Benzinga report.
FAQs
Why did CAT stock jump today?
Shares surged after Q3 earnings beat expectations, driven by strong demand across its core segments, as per the Benzinga report.
Did CAT beat Wall Street’s estimates?
Yes. Both revenue and adjusted earnings per share was higher than analyst expectations, as per the Benzinga report.
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