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CAT Earnings: Caterpillar Inc. Surpasses Estimates with 4Q Adjusted EPS and Revenue Growth

By February 5, 2024 No Comments
  • Caterpillar’s 4th Quarter adjusted EPS (Earnings per Share) surpassed estimates, being $5.23 compared to last year’s $3.86. The estimated EPS was $4.73.
  • The EPS was $5.28, a significant increase from last year’s $2.79.
  • Caterpillar’s revenue for the 4th Quarter was $17.07 billion, a 2.8% increase from last year. The estimated revenue was slightly higher at $17.2 billion.
  • Revenue from the Financial segment was $833 million, a 15% increase from last year. This beat the estimated revenue of $812.5 million.
  • The Machinery, Energy & Transportation segment generated revenue of $16.24 billion, a 2.3% increase from last year. This was slightly below the estimated revenue of $16.53 billion.
  • Research and Development (R&D) expenses were $554 million, a 38% increase from last year. This was higher than the estimated expense of $532.7 million.
  • The company’s shares have received 12 buys, 13 holds, and 5 sells ratings.

Caterpillar Inc on Smartkarma

Smartkarma, an independent investment research network, has recently published insightful reports on Caterpillar Inc by top independent analysts such as Baptista Research. According to Baptista Research‘s reports, Caterpillar has exceeded Wall Street’s expectations in terms of revenue and earnings. The company’s sales and revenues have increased by 12%, surpassing the figures from the previous year. This growth is mainly attributed to a 6% increase in sales to users in North America’s Construction Industries, driven by strong demand in non-residential and residential construction.

Furthermore, Baptista Research‘s reports highlight how Caterpillar is capitalizing on North America’s construction boom. The company’s sales and revenues have soared by 22% due to increased sales volume and price realization. This growth has been observed across all three primary segments of Caterpillar – Construction Industries, Resource Industries, and Energy & Transportation. Sales to users in these segments have registered a significant increase, with Energy & Transportation witnessing a remarkable growth in all applications, including oil and gas, power generation, industrial, and transportation.


A look at Caterpillar Inc Smart Scores

FactorScoreMagnitude
Value2
Dividend2
Growth5
Resilience2
Momentum4
OVERALL SMART SCORE3.0

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Caterpillar Inc, a company known for designing and producing construction, mining, and forestry machinery, has recently been given an overall outlook score of 3 out of 5 according to the Smartkarma Smart Scores. This score is based on a combination of factors including value, dividend, growth, resilience, and momentum. While the company received a score of 5 for growth and 4 for momentum, it scored lower in value, dividend, and resilience with scores of 2 for each. This suggests that while Caterpillar Inc has strong potential for growth and positive momentum, there may be some areas for improvement in terms of value, dividend, and resilience.

Despite receiving a lower score in certain categories, Caterpillar Inc is still a widely recognized and successful company. In addition to manufacturing and distributing machinery for various industries, the company also offers financing and insurance services. With a global network of dealers, Caterpillar has a strong presence in the market and is well-positioned for long-term success. While the Smartkarma Smart Scores provide valuable insights, it is important to note that they are just one aspect of evaluating a company’s performance and should be considered alongside other factors.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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