Caterpillar stock drops as earnings, revenue miss estimates

Investing.com — Caterpillar Inc. reported third-quarter earnings and revenue that fell short of analyst expectations, sending shares down 5.3% in early trading on Wednesday.

The heavy machinery manufacturer posted adjusted earnings per share of $5.17, missing the consensus estimate of $5.35. Revenue for the quarter came in at $16.1 billion, below the $16.37 billion analysts had projected. Despite the miss, revenue was up from the same quarter last year, though the exact percentage increase was not provided.

Caterpillar (NYSE:)’s financial services subsidiary, Cat Financial, reported third-quarter revenues of $888 million, up 5% YoY. The unit’s profit rose 40% to $137 million, driven by lower provision for credit losses.

“Cat Financial delivered another quarter of strong results. Our portfolio continues to perform well with past dues remaining at historical lows,” said Dave Walton, President of Cat Financial.

Cat Financial’s retail new business volume increased 17% YoY to $3.40 billion, primarily due to higher volume in Mining and North America. Past dues improved to 1.74% from 1.96% a year ago.

Before today’s premarket decline, Caterpillar shares had gained over 32% in 2024 and more than 60% in the last 12 months.