Caterpillar shares jump as construction spending powers Q3 earnings beat

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Caterpillar shares jump as construction spending powers Q3 earnings beat
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Caterpillar shares will provide a solid boost for the Dow after the construction equipment giant posted much stronger-than-expected third quarter earnings.

posted much stronger-than-expected third quarter earnings Tuesday, thanks in part to higher construction equipment demand linked to the ongoing support from government infrastructure spending.

Group revenues, Caterpillar said, rose 12.1% to $16.8 billion, a figure that topped analysts' estimates of a $16.52 billion tally. Operating profit margin was 20.5% for the quarter, well ahead of the 16.2% tally recorded last year but down from 21.1% over the three months ending in June. Caterpillar shares were marked 3.25% higher in pre-market trading immediately following the earnings release to indicate an opening bell price of $250.00 each.

 

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