General Results:
Caterpillar posted impressive second-quarter earnings, beating Wall Street's expectations with significant contributions from the construction sector. The boost in infrastructure spending, particularly President Joe Biden's infrastructure bill, led to higher construction equipment demand, causing a 75% increase in adjusted profits to $5.55 per share from the same period last year. Group revenues rose 21.4% to $17.3 billion, and operating profit margin was at 21.1%, a notable jump from last year's 13.6%. Construction sales were up 19%, while resource, energy, and transportation sales grew by 27%. The company also successfully offset rising freight and material costs through equipment price increases.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appManagement Comments and Forecasts:
CEO Jim Umpleby expressed satisfaction regarding the strong operational performance, noting the double-digit top-line growth and record adjusted profit per share. Emphasizing the commitment to customer service, strategy execution, and investment for long-term profitable growth, the comments reflect confidence in continued healthy demand. Despite global economic concerns and challenges related to supply chain issues since the pandemic's onset, Caterpillar seems to have shaken off these hurdles and is experiencing robust demand.
Most Important Financial Metrics:
- Adjusted profits: $5.55 per share, up nearly 75% y/y
- Group revenues: $17.3 billion, up 21.4% y/y
- Operating profit margin: 21.1%
- Construction sales: $7.15 billion, up 19% y/y
- Resource, energy, and transportation sales: up 27% to $7.23 billion
- Adjusted operating income: $3.68 billion
- Machinery, Energy & Transportation segment revenue: $16.55 billion, +22% y/y
- Financial Products segment operating income: $257 million, +9.8% y/y
- Returned $2.0 billion to shareholders through share repurchases and dividends in the quarter
Caterpillar (CAT.US) - price is close to historical highs. After announcing good results, the company gains +1.63% in pre-market trading, with the stock price around 266.8 dollars. Despite good results, the average analysts' forecasts assume a drop in the stock price to 245.67 dollars in the annual perspective. This level is also reflected on the chart and coincides with the support level, which could be reached in the case of a correction, D1 interval, source xStation 5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
