Caterpillar announced much higher than expected earnings for the first quarter of 2017 on Tuesday, and its stock is popping.
The global industrial equipment manufacturer announced adjusted earnings of $US1.28 per share, crushing analysts expectations of $US0.62 per share.
Additionally, the company beat on revenues, generating $US9.8 billion against expectations of $US9.4 billion.
According to a press release accompanying earnings, the company posted the strong results due to cost cutting measures.
“We’re also benefiting from our significant cost reduction and restructuring actions, which have improved cash flow and further strengthened an already healthy balance sheet,” said Caterpillar CEO Jim Umpleby.
While Umpleby said that the company was seeing a strong bounce back in key businesses while energy and transportation, the Caterpillar CEO also cited possible uncertainties as negatives for the business.
“While we are raising the full-year outlook for sales and revenues, there continues to be uncertainty across the globe, potential for volatility in commodity prices, and weakness in key markets,” Umpleby said.
Following the announcement, Caterpillar’s stock jumped in pre-market trading by $US5,09 a share, or 5.26%, as of 7:41 a.m ET.
Get the latest Caterpillar stock price here.
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