CAT - Free Research Report as Caterpillar's Revenues Surged 31%; Delivered Record Quarterly EPS

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LONDON, UK / ACCESSWIRE / May 08, 2018 / If you want access to our free earnings report on Caterpillar Inc. (NYSE: CAT), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=CAT. The Company reported its first quarter fiscal 2018 operating and financial results on April 24, 2018. The construction equipment maker outperformed top- and bottom-line expectations. Additionally, the Company raised its earnings guidance for FY18. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is currently working on the research report for AGCO Corporation (NYSE: AGCO), which also belongs to the Industrial Goods sector as the Company Caterpillar. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Caterpillar most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Earnings Highlights and Summary

For the first quarter of the fiscal year 2018, Caterpillar's total sales and revenues surged 31% to $12.86 billion compared to $9.82 billion in Q1 2017. The increase was primarily due to higher sales volume driven by improved end-user demand across all regions and most end-markets, as well as favorable changes in dealer inventories. The Company's revenue numbers beat analysts' estimates of $11.6 billion.

During Q1 2018, Caterpillar's operating profit increased by $1.73 billion to $2.11 billion compared to $380 million in Q1 2017, due to higher sales volumes and lower restructuring costs.

For Q1 2018, Caterpillar reported a record profit of $2.74 per share compared to a profit of $0.32 per share in Q1 2017. The Company's adjusted profit soared to $2.82 per share in the reported quarter compared to $1.28 per share in the year earlier same quarter. Caterpillar's earnings smashed past Wall Street's estimates of $2.11 per share.

Segment Results

During Q1 2018, Caterpillar's Construction Industries segment's total sales surged 38% to $5.68 billion compared to $4.10 billion in Q1 2017, primarily due to higher sales volumes. The segment's profit was $1.12 billion in the reported quarter compared to $634 million in the prior year's same quarter, as a result of higher sales volumes and a favorable price realization, partially offset by higher SG&A/R&D expenses, material costs primarily for steel, and freight costs.

For Q1 2018, Caterpillar's Resource Industries segment's total sales were $2.31 billion, up 31% compared to $1.76 billion in Q1 2017, primarily driven by higher end-user demand for equipment in all regions. The segment's profit was $378 million in the reported quarter compared to $160 million in the year earlier corresponding quarter, primarily due to higher sales volumes.

Caterpillar's Energy & Transportation segment's total sales were $5.22 billion in Q1 2018, reflecting a growth of 26% compared to $4.14 billion in Q1 2017, primarily due to higher external sales volumes across all applications.

During Q1 2018, Caterpillar's Financial Products segment's revenues were $793 million, up 4% on a y-o-y basis, primarily attributed to higher average earnings assets in Asia/Pacific, and higher average financing rates in North America. The segment's profit was $141 million in the reported quarter versus $183 million in the year ago comparable period, due to an increase in the provision for credit losses at Cat Financial.

Cash Matters

As of March 31, 2018, Caterpillar's cash and liquidity position remained strong with an enterprise cash balance of $7.9 billion. The Company's machinery, energy, and transportation (ME&T) operating cash flow was $948 million in the reported quarter compared to $1.5 billion in Q1 2017. The decrease was primarily due to higher short-term incentive compensation payments in Q1 2018. Caterpillar repurchased $500 million of its common stock during Q1 2018.

Outlook

In January 2018, Caterpillar provided an EPS outlook range of $7.75 to $8.75 for FY18. The Company is increasing its 2018 profit outlook by $2.00 per share to a band of $9.75 to $10.75, primarily due to a growing demand for its products and services. The Company is expecting adjusted EPS to be in the range of $10.25 to $11.25.

Stock Performance Snapshot

May 07, 2018 - At Monday's closing bell, Caterpillar's stock advanced 2.36%, ending the trading session at $149.82.

Volume traded for the day: 6.85 million shares, which was above the 3-month average volume of 6.04 million shares.

Stock performance in the last month — up 4.78%; previous six-month period — up 9.78%; and past twelve-month period — up 50.36%

After yesterday's close, Caterpillar's market cap was at $89.59 billion.

Price to Earnings (P/E) ratio was at 19.59.

The stock has a dividend yield of 2.08%.

The stock is part of the Industrial Goods sector, categorized under the Farm & Construction Machinery industry. This sector was up 0.8% at the end of the session.

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