Investing.com - Caterpillar reported record third quarter earnings on Tuesday, but shares still sold off after the company maintained its profit per share outlook.
The firm reported earnings per share of $2.88 on revenue of $13.5B. Analysts polled by Investing.com forecast EPS of $2.83 on revenue of $13.24bn. That compared to EPS of $1.95 on revenue of $11.41bn in the same period a year earlier. The company had reported EPS of $2.97 on revenue of $14.01bn in the previous quarter.
Caterpillar (NYSE:CAT) shares lost 5.6% to trade at $121.49 in pre-market trade following the report.
Shares came under pressure after the company maintained its adjusted profit per share outlook in a range of $11.00 to $12.00, despite the record third quarter profits.
The company also said manufacturing costs rose, driven by higher steel prices and tariffs, adding to fears over the impact of the U.S.-China trade war.
"Most end markets continue to improve,” the company said in a press release. “Order rates and backlog remain healthy. In the fourth quarter, price realization, operational excellence and cost discipline are expected to more than offset higher material and freight costs, including tariffs.”
For the year, Caterpillar shares are down 18.69%, under-performing the S&P Global 100 which is down 0.25% year to date.
Caterpillar follows other major Capital Goods sector earnings this month
On Tuesday, 3M (NYSE:MMM) reported third quarter EPS of $2.58 on revenue of $8.15bn, compared to forecasts of EPS of $2.72 on revenue of $8.45bn.
Honeywell (NYSE:HON) earnings beat analyst's expectations on Friday, with third quarter EPS of $2.03 on revenue of $10.76bn. Investing.com analysts expected EPS of $1.99 on revenue of $10.75bn
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