The Peoria, IL-based construction and mining equipment maker reported adjusted Q4 EPS of $0.83, which was $0.16 better than the Wall Street consensus of $0.67. Revenues fell 13.2% from last year to $9.57 billion, however, missing analysts’ $9.81 billion view.
Looking ahead, CAT said it now expects lower profits and revenue for 2017, citing effects from the strengthening of the U.S. dollar. Caterpillar’s new forecast is for EPS of $2.90 for the year, well short of analyst expectations for $3.07. Revenues are seen ranging from $36 to $39 billion, versus Wall Street’s $38.3 billion view.
The company commented via press release:
“Our results for the fourth quarter, while slightly better than expected, continued to reflect pressure in many of our end markets from weak economic conditions around much of the world. Our team did a great job in the quarter, as they have all year, aligning our cost structure with current demand while preserving capacity for the future. I’m confident we are focusing on the right areas: controlling costs, maintaining a strong balance sheet and investing in the key areas important to our future,” said Caterpillar Chief Executive Officer Jim Umpleby.
Caterpillar Inc. shares fell $0.91 (-0.93%) in premarket trading Thursday. Year-to-date, CAT has gained 6.71%, versus a 2.70% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of StockNews.com.