Caterpillar reports third-quarter profit above expectations and revenue below
Chairman and CEO Joe Creed points to a record backlog and strong order rates.
Published
Chart: CAT, one-minute prices, three sessions
Caterpillar reported third-quarter earnings of $7.20 per share on Thursday, $0.04 above expectations. Revenue came in at $20.70 billion, short of the $20.75 billion expected.
Chairman and CEO Joe Creed said the results reflect the durability of the company's end markets. He pointed to strong order rates and a record backlog, the value of orders not yet filled.
The revenue shortfall is small. It still leaves some doubt over near-term sales volume, even as orders hold up.
Caterpillar was the worst performer in the Dow on Oct. 7, as investors worried that demand was softening. A record backlog and strong order rates point to steady demand rather than the slowdown that the early-October drop implied. The strength in orders also complicates the case behind UBS's cut of its target for the shares to $750 from $925 on Oct. 26.
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