Josh White Sharecast News
30 Jan, 2025 13:29 30 Jan, 2025 12:39

Caterpillar posts Q4 earnings beat, warns of 2025 weakness

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CaterpillarSharecast graphic / Josh White

Caterpillar Inc.

$348.49

09:45 20/02/25
-1.28%
-$4.51

Caterpillar reported fourth-quarter earnings that exceeded analyst expectations on Thursday, but warned that sales and revenue for 2025 were likely to decline compared to the prior year.

Dow Jones I.A.

44,127.85

04:30 15/10/20
n/a
n/a

The company’s adjusted earnings per share stood at $5.14, surpassing the consensus estimate, but revenue fell short of forecasts, leading to a decline in its stock price.

Fourth-quarter revenue totalled $16.22bn, down 5% from the prior year and below the $16.64bn analysts had projected.

The drop was put down to lower sales volume, with dealer inventories decreasing by $1.3bn during the quarter.

For the full 2024 year, Caterpillar said sales and revenue fell 3% to $64.8bn, reflecting weaker demand, though partially offset by favorable pricing adjustments.

Segment performance showed broad declines - construction industries sales dropped 8% year-on-year to $6bn, while resource industries revenue declined 9% to $2.96bn.

The energy and transportation division remained stable at $7.65bn.

Despite the weaker sales, Caterpillar said it maintained strong cash flow, ending the year with $6.9bn in enterprise cash.

The company said it spent $7.7bn on share buybacks and $2.6bn on dividends in 2024.

At 0739 EST (1239 GMT), shares in Caterpillar were down 3.97% in premarket trading in New York at $377.61.

Reporting by Josh White for Sharecast.com.

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