Caterpillar whiffs on earnings and slashes forecast for the year, shares drop 3%

Caterpillar just reported first-quarter earnings ahead of the market open.

The industrial machinery maker posted $0.67 in adjusted earnings per share (EPS), and revenues of $9.46 billion.

Analysts had estimated that Caterpillar earned $0.68 in EPS, roughly the midpoint of the range it earlier projected, and revenues fo $9.39 billion.

The company warned in March that its sales and earnings would drop amid low commodity prices, weak demand and the strong dollar. Its estimates for sales and profits trailed the estimates at the time.

In Friday’s release, Caterpillar cut the midpoint of its forecast for full-year adjusted EPS by 2%. It now projects $3.70, down from $4, but higher than the estimate for $3.61.

More to come …

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