Vladimir Dimitrov, CFA is a former strategy consultant within the field of brand and intangible assets valuation. During his career in the City of London he has been working with some of the largest global brands within the technology, telecom and banking sectors. Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. ...

Caterpillar Inc. (CAT) has reported third-quarter 2024 adjusted earnings per share of $5.17, which missed the Zacks Consensus Estimate of $5.33 by a margin of 3%. The bottom-line figure was 6% lower than the year-ago quarter. This marked an end to CAT's enviable stint of delivering improved earnings for 14 straight quarters. Improved results in the Energy & Transportation segment were offset by weaker volume performances at the Construction Industries and Resource Industries segments. The volume declines in ...

Key Takeaways Caterpillar missed third-quarter earnings and revenue forecasts on a pullback in demand from the industrial sector. Sales of construction and resource industries declined, but they were up at its Energy & Transportation division. Caterpillar warned full-year sales and revenue will be "slightly lower" than its previous guidance. Caterpillar (CAT) shares declined Wednesday when the construction equipment manufacturer posted worse-than-expected results and warned about the future on a slowdown in ...

Financial Data and Key Metrics - Sales and revenues decreased by 4% YoY to $16.1 billion in Q3 2024, primarily due to lower sales volume [9][11] - Adjusted operating profit margin was 20%, generally in line with expectations [9][31] - Adjusted profit per share was $5.17, consistent with expectations [9][31] - ME&T free cash flow was $2.7 billion in Q3, with $6.4 billion generated in the first three quarters of 2024 [7][18] - Backlog increased slightly to $28.7 billion, remaining at a healthy level [9][17] Business Segment Performance Construction Industries - Sales to users declined 7% YoY, with North America down due to lower rental fleet loading and absence of a large pipeline deal [12] - Sales in EAME declined due to weak construction activity in Europe, while Latin America saw an increase [12] - Segment sales decreased 9% to $6.3 billion, with profit down 20% to $1.5 billion [39] Resource Industries - Sales to users declined 18% YoY, mainly due to softness in articulated trucks and off-highway trucks [13] - Segment sales decreased 10% to $3.0 billion, with profit down 15% to $619 million [40] Energy & Transportation - Sales to users increased 5% YoY, driven by strong growth in power generation and oil & gas [14] - Segment sales increased 5% to $7.2 billion, with profit up 21% to $1.4 billion [41] Market Performance - North America saw a decline in Construction Industries sales due to lower rental fleet loading [12] - Asia Pacific experienced soft economic conditions, with demand in China remaining low for above 10-ton excavators [20] - EAME faced weak economic conditions in Europe, partially offset by strong construction demand in the Middle East [20] - Latin America showed healthy construction activity with modest growth expected [20] Strategy and Sustainability - The company announced additional multiyear investments to expand large engine output capability by more than 125% compared to 2023 [26] - Introduced Cat Dynamic Energy Transfer (DET) to support mining industry's energy transition, improving operational efficiency and machine uptime [27][28] Management Commentary on Operating Environment and Future Outlook - The company expects lower sales to users in Construction Industries in Q4 but remains positive about long-term demand [19] - Resource Industries is expected to see a moderation in the rate of decline in Q4, with higher services revenues anticipated [21] - Energy & Transportation is expected to see robust growth in power generation, driven by data center demand and generative AI [22] - Full-year ME&T free cash flow is expected to be near the top of the $5 billion to $10 billion target range [32][45] Q&A Session Question: Sustainability of Margin Performance - The company focuses on increasing absolute OPACC dollars and remains competitive across diverse markets [55][56] Question: Resource Industries Outlook for 2025 - The company is bullish on the long-term prospects for mining, driven by the energy transition and high product utilization [58][59] Question: Construction Industries Orders and Sentiment - Lower rental fleet loading and absence of a large pipeline deal impacted Q3 sales, but government-related infrastructure projects remain healthy [61][62] Question: Large Engine Capacity Expansion - The company is increasing large engine output capability by more than 125% compared to 2023, driven by demand from data centers and distributed power generation [64][65] Question: Pricing Pressure in Construction Industries - Pricing pressure is expected to persist for several quarters due to merchandising programs, but cost offsets are being managed [70][91] Question: Backlog and Power Generation Demand - Backlog increased in Energy & Transportation, driven by strong demand for power generation and solar turbines [94][97] Question: China Market Position - China remains a small part of the company's sales, with the market primarily focused on excavators above 10-ton [99] Question: Solar Turbines and Power Generation Opportunity - The company is seeing increased demand for solar turbines, driven by data centers and grid demand, with capacity expansion ongoing [103][104]

About this content About Josh Lamb After graduating from the University of Kent in the summer of 2022 with a degree in History, Josh joined Proactive later that year as a journalist in the UK editorial team. Josh has reported on a range of areas whilst at Proactive, including energy companies during a time of global crisis, aviation and airlines as the sector recovers from the pandemic, as well as covering economic, social and governance issues. Read more About the publisher Proactive financial news and onl ...

Caterpillar (CAT) reported $16.11 billion in revenue for the quarter ended September 2024, representing a yearover-year decline of 4.2%. EPS of $5.17 for the same period compares to $5.52 a year ago. The reported revenue represents a surprise of -1.50% over the Zacks Consensus Estimate of $16.35 billion. With the consensus EPS estimate being $5.33, the EPS surprise was -3.00%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determi ...

Caterpillar (CAT) came out with quarterly earnings of $5.17 per share, missing the Zacks Consensus Estimate of $5.33 per share. This compares to earnings of $5.52 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -3%. A quarter ago, it was expected that this construction equipment company would post earnings of $5.53 per share when it actually produced earnings of $5.99, delivering a surprise of 8.32%.Over the last four quarters ...

| --- | --- | --- | |------------------------------------------------------|-------|-------| | | | | | | | | | Third Quarter 2024 Financial Review October 30, 2024 | | | | | | | 3Q 2024 EARNINGS RELEASE 2 Caterpillar: Confidential Yellow Forward-Looking Statements Certain statements in this financial review relate to future events and expectations and are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "believe," "estimate," "will be," "wi ...

Corporate Governance - Caterpillar Inc. appointed Nazzic Keene as a new independent director effective November 1, 2024[2] - Ms. Keene will also serve on the Nominating & Governance Committee and Compensation & Human Resources Committee[2] - Compensation for Ms. Keene will align with the standard agreement for non-employee directors as per the latest proxy statement[2]

Third-quarter 2024 profit per share of $5.06; adjusted profit per share of $5.17 Enterprise operating cash flow was $3.6 billion in the third quarter of 2024 Deployed $1.5 billion of cash for share repurchases and dividends in the third quarter Third Quarter ($ in billions except profit per share) 2024 2023 Sales and Revenues $16.1 $16.8 Profit Per Share $5.06 $5.45 Adjusted Profit Per Share $5.17 $5.52 Please see a reconciliation of GAAP to non-GAAP financial measu ...