Caterpillar Stock Slides After Revenue Misses Projections

Core Insights - Caterpillar (CAT) shares experienced a decline after the company's fourth-quarter revenue fell short of expectations, reporting $16.2 billion, a 5% decrease year-over-year, and below analyst consensus [1][3] - The company's earnings per share reached an all-time high of$ 5.78, an increase from $5.28, surpassing analysts' expectations [1] Revenue Breakdown - Revenue from the construction industries segment decreased by 8% to$ 6 billion [2] - Resource industries, including mining trucks, saw a revenue drop of 9% to $2.96 billion [2] - The energy and transportation segment remained flat year-over-year, generating$ 7.65 billion in revenue [2] - The decline in revenue was attributed to lower sales volume due to shrinking dealer inventories, which fell by $1.3 billion in the fourth quarter compared to a$ 900 million decrease the previous year [2] Market Reaction - Caterpillar's shares fell approximately 5% intraday following the fourth-quarter results [3] - The company is viewed as a bellwether stock, serving as a proxy for both domestic and global economic trends [3] - Over the past 12 months, Caterpillar's shares have increased by about 25% [3]