Investing.com -- Caterpillar Inc. reported third-quarter earnings and revenue that fell short of analyst expectations, sending shares down 4.5% in early trading on Wednesday.
The heavy machinery manufacturer posted adjusted earnings per share of $5.17, missing the consensus estimate of $5.35. Revenue for the quarter came in at $16.1 billion, below the $16.37 billion analysts had projected. Despite the miss, revenue was up from the same quarter last year, though the exact percentage increase was not provided.
Caterpillar (NYSE:CAT)'s financial services subsidiary, Cat Financial, reported third-quarter revenues of $888 million, up 5% YoY. The unit's profit rose 40% to $137 million, driven by lower provision for credit losses.
"Cat Financial delivered another quarter of strong results. Our portfolio continues to perform well with past dues remaining at historical lows," said Dave Walton, President of Cat Financial.
Cat Financial's retail new business volume increased 17% YoY to $3.40 billion, primarily due to higher volume in Mining and North America. Past dues improved to 1.74% from 1.96% a year ago.
Before today's premarket decline, Caterpillar shares had gained over 32% in 2024 and more than 60% in the last 12 months.
Following the results, analysts at Truist maintained a Buy rating on the stock and $456 per share price target, saying the company posted a "modest miss" compared to expectations.
Barclays, which has an Equal-Weight rating on CAT, said: "CAT’s results and guide reflect a moderating business but their guide and some forward KPI’s don’t (yet) reflect a business that’s in precipitous decline."
Morgan Stanley noted that the company's retail sales deteriorated across all three segments.
Finally, Jefferies analysts stated: "CAT posted a weaker that expected 3Q result. 3Q dealer machine inventories increased $100mn, roughly $100mn more than normal seasonality. CAT expects dealer inventories to finish close to 2023 levels by year-end. The sequential increase may further investors' concerns about excess inventories building in the field."