Caterpillar Q3 Revenues Fall 23%; Beating Expectations
Investing.com
Published Oct 27, 2020 06:42AM ET
Caterpillar Earnings, Revenue Beat in Q3
Investing.com - Caterpillar (NYSE:CAT) reported on Tuesday third quarter earnings that beat expectations, yet the manufacturer of heavy equipment still saw revenues dropping 23% from a year ago as the coronavirus pandemic stifled demand.
Caterpillar announced earnings per share of $1.34, down 54% from last year, on revenue of $9.88 billion. Analysts polled by Investing.com anticipated EPS of $1.17 on revenue of $9.71 billion.
The company's stock dropped 1.4% premarket, having been up 10% from the beginning of the year.
“I’m proud of our global team’s performance as we continue to safely navigate the pandemic while remaining firmly committed to serving our customers,” said Caterpillar Chairman and CEO Jim Umpleby. “Our third-quarter results largely aligned with our expectations, and we’re encouraged by positive signs in certain industries and geographies. We’re executing our strategy and are ready to respond quickly to changing market conditions."
Catepillar reported a strong balance sheet, ending the third quarter with $9.3 billion of enterprise cash and more than $14 billion of available liquidity sources.
"Investors have built expectations that global efforts to kick-start the economy are going to help Caterpillar sooner and later, helping the company to boost its production and make use of the idled capacity. If that’s not happening, then it’s all about cost-cutting and managing through the downturn which is hurting Caterpillar’s clients, including mining, energy & transportation businesses," said Haris Anwar, an analyst at Investing.com.
"That said, Caterpillar has shown through cost cuts and demand management that it is well-positioned to weather the crisis, especially when it has enough cash and available liquidity."
Stay up-to-date on all of the upcoming earnings reports by visiting Investing.com's earnings calendar
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Written By: Investing.com
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