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Caterpillar Stock Hits New High After Better-Than-Expected Q4 Profit

Caterpillar truck on display
Tayfun Coskun / Anadolu Agency / Getty Images

Key Takeaways

  • Caterpillar reported fourth-quarter adjusted earnings per share of $5.23, well ahead of Wall Street's expectations for $4.75.
  • Revenue in the quarter increased 3% to $17.1 billion, led by a 12% increase in the company's energy and transportation business.
  • The company expects Q1 revenue to be broadly similar to what was posted in the first three months of 2023.
  • Company shares rose as high as $334.87 early Monday, an all-time intraday high.

Shares in Caterpillar (CAT) hit fresh all-time highs in early trading Monday after the industrial equipment manufacturer reported earnings that beat Wall Street expectations.

The company posted adjusted earnings per share of $5.23, up from $3.86 a year earlier and well above Wall Street analysts' consensus view of $4.75 a share. Revenue for the fourth quarter of 2023 came in at $17.1 billion, 3% higher than the same period a year ago and roughly in line with expectations.

Caterpillar's Energy and Transportation business led revenue gains for the company, with sales rising 12% to $7.7 billion in the fourth quarter. Sales in Construction Industries fell 5% to $6.5 billion, while those in Resource Industries dropped 6% to $3.2 billion.
Caterpillar said that retail new business in the latest quarter was $3.6 billion, a 30% increase over a year ago, driven primarily by higher North American volume.
The company said it expects sales and revenue in the current quarter to be "broadly similar to the first quarter of 2023." The company also expects "favorable price realization and slightly lower machine dealer inventory build." First-quarter adjusted operating profit margin is also likely to be similar to a year ago, Caterpillar said in its earnings presentation.
In the first quarter last year, Caterpillar revenue came in at $15.9 billion and its operating profit margin was 17.2%.

Caterpillar shares were up 1.1% at $318.52 at around 11:15 a.m. ET, after rising as high as $334.87 earlier in Monday's session.

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