Caterpillar Reports Q4 Earnings: Missed Revenue, Beat EPS

Caterpillar's recent Q4 results showed earnings exceeding expectations despite missing revenue targets. The outlook remains cautious as sales and profitability are expected to decline, which has negatively impacted investor sentiment.

Date: 04-02-2025

AI Rating: 4

Earnings Per Share (EPS): Caterpillar reported adjusted earnings of $5.14 per share, beating the consensus estimate of $5.02. However, this is a decline from $5.23 in the prior-year quarter.

Revenue Growth: The reported revenue was $16.2 billion, falling short of the consensus estimate of $16.4 billion. Additionally, it represents a 5% year-over-year decline.

Profit Margins: Caterpillar's adjusted operating margin contracted by 60 basis points to 18.3%.

Overall, the results showed that despite a better-than-expected earnings report, missing revenue and a negative outlook regarding future sales and profitability have contributed to a 5% drop in stock price. The decline in dealer inventory levels indicates soft demand, impacted by high inflation and interest rates, further suggesting challenges for future revenue streams.

Investor Sentiment: The fluctuation in stock price reflects investors’ sentiment towards the lack of revenue growth and the challenging macroeconomic environment. The stock has offered consistent returns but struggled to outperform market benchmarks in recent years.

Stocks: CAT