Caterpillar Cuts Forecast on Unpredictable Demand; Q3 Profit Beats, but Revenue Misses (CAT)


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Construction and mining equipment maker Caterpillar Inc. ( CAT ) on Monday posted mixed third quarter earnings results and lowered its full-year outlook, citing slowing demand growth for its products.

The Peoria, IL-based company reported third quarter net income of $1.7 billion, or $2.54 per share, compared with $1.14 billion, or $1.71 per share, in the year-ago period.

Revenue rose 4.6% from last year to $16.45 billion.

On average, Wall Street analysts expected a much smaller profit of $2.22 per share, albeit on higher revenue of $16.77 billion.

Looking ahead, CAT cut reduced its full-year 2012 earnings outlook, citing weakening global economic conditions. The company now expects full-year earnings of $9.00 to $9.25 per share on $66 billion in revenue. It had previously forecast earnings of $9.60 per share on revenue of $68 billion to $70 billion for the year.

Caterpillar shares fell $1.16, or -1.4%, in premarket trading Monday.

The Bottom Line
Shares of Caterpillar ( CAT ) have a 2.48% dividend yield, based on Friday's closing stock price of $83.86. The stock has technical support in the $79-$80 price area. If the shares can firm up, we see overhead resistance around the $88-$90 price levels.

Caterpillar Inc. ( CAT ) is not recommended at this time, holding a DARS™ Rating of 3.3 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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