CAT - Why Caterpillar Shares Are Moving Higher Today
2024-02-05 10:38:51 ET
Caterpillar (NYSE: CAT) delivered another strong quarter and raised its margin and free-cash-flow targets for the new year. Investors were happy to see Cat purring along during what has been a shaky environment for some industrial companies, and sent the company's shares up by about 5% at the open on Monday.
Caterpillar makes giant machines used in construction and mining. It is a well-run business, but it is reliant on end markets that tend to be cyclical. With Wall Street mulling the impact of inflation and higher interest rates, and some manufacturers reporting tepid demand this earnings season, investors were nervous ahead of Cat's quarterly report.
The report gave no reason for alarm. Caterpillar earned $5.23 per share in the fourth quarter, easily topping the $4.75 per share analyst consensus, though revenue, at $17.07 billion, was slightly below expectations. Revenue was up 3% for the quarter and 13% for the year, thanks to higher sales volume and strong pricing power.
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Why Caterpillar Shares Are Moving Higher Today