Caterpillar Inc. Misses EPS Estimates; Weak Outlook; Shares Fall (CAT)
Shauna O'Brien Jan 27, 2015
Shares of Caterpillar Inc. (CAT ) plummeted on Tuesday morning after the company reported lower net income, which missed analysts’ expectations.
CAT’s Earnings in Brief
- CAT reported earnings of $757 million, or $1.23 per share, down from $1.00 billion, or $1.54 per share, last year.
- Excluding special items related to restructuring costs, EPS was $1.35 – below analysts’ estimate of $1.55.
- Revenue declined to $14.24 billion, down from $14.40 billion a year ago. Analysts expected to see revenue of $14.18 billion.
- Looking forward to FY2015, the company expects to see revenue of about $50 billion and adjusted EPS of $4.75. Analysts expect to see $55.01 billion in revenue and $6.67 per share in earnings.
CAT’s chairman and CEO Doug Oberhelman commented: "Overall, we had many positives and a better year in 2014 than 2013. Our emphasis on cost management, operational execution and cash flow helped us deliver better profit per share than both 2013 and the 2014 outlook we provided at the start of the year.”
CAT will pay its next 70 cent dividend on February 20. The stock went ex-dividend on January 15.
The Bottom Line
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