Published on 25 Apr 2024 on Zacks via Yahoo Finance

Caterpillar (CAT) Q1 Earnings Top Estimates on Higher Pricing

Caterpillar Inc. CAT reported first-quarter 2024 adjusted earnings per share of a record $5.60, which beat the Zacks Consensus Estimate of $5.12 by a margin of 9%. The bottom-line figure marked a 14% year-over-year improvement.Favorable price realization and manufacturing costs, largely reflecting lower freight and improved performance in the Energy & Transportation segment, mainly led to the improvement in CAT’s earnings for the quarter. Both the Construction Industries and Resource Industries segments experienced declines in sales of equipment to end users.Including one-time items, Caterpillar’s earnings per share were $5.75, up 54% from $3.74 in the year-ago quarter.

Revenues Flat as Low Volumes Offset Prices

The company reported first-quarter revenues of around $15.8 billion, which missed the Zacks Consensus Estimate of $16.1 billion. The top line was flat compared with the year-ago quarter as favorable price realization was offset by lower volumes. Caterpillar witnessed lower sales of equipment to end users.Improved results in the Energy & Transportation segment were offset by weaker performances in the Construction Industries and Resource Industries segments. North America and Latin America witnessed 8% and 1% year-over-year improvement in sales in the first quarter. This was offset by a 17% sales decline in EAME and a 5% drop in sales in Asia Pacific.