Caterpillar’s Q4 Profit, 2011 Outlook Blow Away Expectations (CAT)

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Construction and mining machinery maker Caterpillar Inc. ( CAT ) on Thursday posted much better-than-expected fourth quarter profits and full-year guidance, sending its shares higher in premarket trading.

The Peoria, IL-based company reported fourth quarter net income of $968 million, or $1.47 per share, compared with $232 million, or 36 cents per share, in the year-ago period.

Revenue surged 62% from last year to $12.81 billion.


On average, Wall Street analysts expected a much smaller profit of $1.27 per share, on much lower revenue of $11.72 billion.

Looking ahead, the company forecast full-year 2011 profits of $6 per share, which would beat analysts' current estimates of $5.84 per share.

Caterpillar shares rose $2.43, or +2.5%, in premarket trading Thursday.

The Bottom Line
We have been recommending shares of Caterpillar ( CAT ) since Dec.7, 2010, when the stock was trading at $89.26. The company has a 1.84% dividend yield, based on last night's closing stock price of $95.75.

Caterpillar Inc. ( CAT ) is a "Recommended" dividend stock, holding a Dividend.com DARS™ Rating of 3.5 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 The NASDAQ OMX Group, Inc.

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