Caterpillar Tumbles on Disappointing 2018 Guidance

Published on: 23 Oct, 2018

Caterpillar Inc. (NYSE: CAT) shares tumbled nearly 7% on Tuesday after the industrial company provides 2018 earnings guidance that fell short of analysts’ estimate.

Caterpillar said sales and revenue rose 18% to USD 13.5 Billion in the third quarter. Earnings per share was $2.88 per share in the quarter ended September 30, compared to $1.77 per share a year earlier.

Analysts had projected third-quarter revenue of USD 13.29 Billion, according Thomson Reuters.

For the outlook of 2018, the company expects adjusted profit per share at a range of $11.00 to $12.00. The lower range forecast fell short of analysts’ estimates of $11.65 EPS, according to Refinitiv. The company expected price realization, operational excellence and cost discipline will offset higher material and freight costs, including tariffs in the fourth quarter.

“This was the best third-quarter profit per share in our company’s history,” said Caterpillar CEO Jim Umpleby. “Our global team continues to do excellent work focusing on our customers’ success and executing our strategy for profitable growth.”

The impact of the trade war between the U.S. and China have imposed to the companies slowly. The U.S. and China have imposed tariffs on billions of dollars worth of their goods this year,  

Caterpillar shares fell as much as 7.54% to $119.01 per share in the early trading on Tuesday. The disappointing earnings result sent the major stock indexes lower on Tuesday. The Dow Jones fell more than 400 points. While S&P 500 fell 1.61% and the Nasdaq Composite fell 1.86%.


  • 1956Views
  • 0Comments

Recommend to Friends

  • facebook
  • Twitter
  • google plus
  • pinterest
  • Digg
  • stumbleupon
  • Reddit
  • linkedin

Marco Zhou



Sign Up for Weekly Updates

Opt-into our eNewsletter NOW! For the Latest Trending Financial News Topics in Cannabis, Tech, Biotechs, Precious Metals, Energy, Renewable Energy and much more!

Related Posts

19 Jun, 2017 3084
28 Jun, 2017 3179
13 Jul, 2017 3322
26 Jul, 2017 3853


There is no comment on this article