Caterpillar earnings Q4 2018 misses estimates, stock falls
The Caterpillar share threw Monday after the company had earnings that were significantly lower than expected.
The Heavy Equipment Creator quoted tariffs as a factor in the Fourth Quarter Earnings, revenue exceeding expectations
How the company compared to what Wall Street expected :
- Earnings: $ 2.55 per share versus $ 2.99 per share expected by analysts examined by Refinitiv
- Revenue: $ 14.43 billion against $ 14.33 billion as expected by analysts surveyed by Refinitive
Caterpillar share price shot Nearly 6 percent on the news
Caterpillar expects the 201[ads1]9 profit to grow to a range from $ 11.75 to $ 12.75 per share, analysts expecting $ 12.73 per share.
"Our outlook assumes modest sales growth based on the foundations of our various end markets, in addition to the macroeconomic and geopolitical environment, says CEO Jim Umpleby in a statement. "We will work together to focus on operational excellence, including cost discipline, while d u invests in extended offerings and services to drive long-term, profitable growth. "
The company said sales in the Asia-Pacific declined due to lower demand and unfavorable exchange rates.
In December, Washington and Beijing came to a ceasefire in the commercial war and promised to stop adding trade tariffs for 90 days. March 2 to get a decision
The ceasefire newsletter led to a large investment company to upgrade Caterpillar shares in December
Last year, Caterpillar's stock fell 7.5 percent to its lowest level since 2011 after the company issued Disappointing 2018 guidance. The industrial giant said the cost is rising due to tariffs and increases in steel prices.
Caterpillar said the impact of material cost charges for the third quarter was $ 40 million.
The Illinois-based company told its dealers that prices would rise by 1 percent to 4 percent worldwide on machines and engines with some exceptions to compensate for higher stock
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