Caterpillar(US:CAT) ZACKS·2024-10-30 17:40Core Insights - Caterpillar Inc. reported third-quarter 2024 adjusted earnings per share of $5.17, missing the Zacks Consensus Estimate of $5.33 by 3% and marking a 6% decline year-over-year, ending a streak of 14 consecutive quarters of improved earnings [1][2] - The company's revenues for the third quarter were approximately $16.1 billion, falling short of the Zacks Consensus Estimate of $16.35 billion by 1.5% and representing a 4% year-over-year decline [3] Financial Performance - Adjusted earnings per share were $5.17, down from $5.45 in the year-ago quarter, while including one-time items, earnings per share were $5.06, a 7% decrease [2] - Gross profit decreased by 3% to $6 billion, with a gross margin of 37.5%, slightly up from 37% in the previous year [5] - Operating profit was around $3.15 billion, an 8.8% decline from the previous year, with an operating margin of 19.5%, down from 20.5% [6] Segment Performance - The Machinery and Energy & Transportation (ME&T) segment saw sales dip 5% year-over-year to around $15.2 billion, with Construction Industries sales down 9% to $6.35 billion [7] - Resource Industries segment sales decreased by 10% year-over-year to around $3 billion, while Energy & Transportation segment sales grew by 5% to around $7.2 billion [8][9] Regional Performance - Latin America was the only region with a 5% year-over-year revenue improvement, while Asia Pacific, EMEA, and North America experienced declines of 7%, 6%, and 4% respectively [4] Cash Flow and Shareholder Returns - Operating cash flow for the third quarter was $3.6 billion, with the company returning around $9 billion to shareholders through dividends and share repurchases in the first nine months of 2024 [13] Future Outlook - Caterpillar anticipates fourth-quarter sales to be slightly lower than the previous year, with expectations for 2024 revenues to be slightly lower than the record $67 billion achieved in 2023 [14][15]