Caterpillar tops earnings expectations but sales volume declines

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Caterpillar tops earnings expectations but sales volume declines

) reported a mixed first quarter of 2024, with earnings surpassing analysts' expectations but revenue falling short, causing its stock to slide 1.8%. The company announced an adjusted profit per share of $5.60, exceeding the consensus estimate by $0.46. However, revenue for the quarter was $15.8 billion, not meeting the $16 billion analysts had anticipated.

Chairman and CEO Jim Umpleby expressed satisfaction with the company's performance, highlighting the higher adjusted operating profit margin and robust free cash flow. The strong financial position enabled Caterpillar to return a record $5.1 billion to shareholders through dividends and share repurchases in the first quarter. "We continue to execute our strategy for long-term profitable growth," Umpleby stated.

The company's enterprise operating cash flow stood at $2.1 billion, ending the quarter with $5.0 billion in enterprise cash. Despite the positive financial metrics, the slight decline in stock price reflects investor reaction to the revenue miss. The company's performance in the Energy & Transportation segment was a bright spot, with increased sales, while the Construction Industries and Resource Industries segments saw lower sales.

 

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