Free Research Report as Caterpillar’s Revenue Surged 35% and Adjusted EPS Zoomed 160.2%

LONDON, UK / ACCESSWIRE / January 31, 2018 / Active-Investors.com has just released a free earnings report on Caterpillar Inc. (NYSE: CAT). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=CAT. The Company reported its fourth quarter fiscal 2017 and full fiscal year 2017 operating and financial results on January 25, 2018. The world’s largest heavy-duty equipment maker surpassed earnings expectations for the seventh consecutive quarter, and provided guidance for the full fiscal year 2018. Register today and get access to over 1000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Caterpillar most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Earnings Highlights and Summary

Caterpillar’s revenues surged 35% to $12.90 billion in Q4 2017 compared to $9.57 billion in Q4 2016, primarily driven by a higher sales volume, mostly due to improved end-user demand. The Company’s revenue numbers topped analysts’ estimates of $11.8 billion.

For Q4 2017, Caterpillar’s operating profit totaled $1.16 billion compared to an operating loss of $1.26 billion in Q4 2016. The increase of $2.42 billion in operating profit was due to a higher sales volume, a decrease in mark-to-market losses related to pension and OPEB plans, and the absence of a goodwill impairment charge in Resource Industries in 2016.

Caterpillar reported a loss of $2.18 per share compared to a loss of $2.00 per share in Q4 2016. The Company’s adjusted profit was $2.16 per share compared to an adjusted profit of $0.83 per share in the year ago same period. Caterpillar’s adjusted profit per share excludes several large adjustments consisting of a charge of $2.4 billion, or $3.91 per share, from US tax reform legislation, restructuring costs, mark-to-market losses for remeasurement of pension and OPEB plans, state deferred tax valuation allowance adjustments, a gain on sale of an equity investment in 2017, and a goodwill impairment charge in 2016.

For the full year FY17, Caterpillar’s revenues jumped 18% to $45.5 billion from $38.5 billion in FY16. The Company’s profit was $1.26 per share in FY17 compared to a loss of $0.11 per share in FY16. Caterpillar’s adjusted profit per share was $6.88 in FY17 compared to an adjusted profit per share of $3.42 in FY16.

Segment Results

During Q4 2017, Caterpillar’s Construction Industries segment’s sales surged 46.5% to $5.26 billion compared to $3.59 billion in Q4 2016. The increase was due to a higher sales volume and a favorable price realization. The Construction Industries segment’s profit soared 150.9% to $838 million in Q4 2017 compared to $334 million in Q4 2016. The increase in profit was primarily due to higher sales volume, favorable price realization, and variable manufacturing efficiencies.

For Q4 2017, Caterpillar’s Resource Industries segment’s sales surged 53% to $2.21 billion compared to $1.44 billion in Q4 2016, primarily driven by higher end-user demand for equipment and aftermarket parts in all regions, favorable impact of changes in dealer inventories, and favorable price realization. The Resource Industries segment’s profit was $209 million in Q4 2017 compared to a loss of $711 million in Q4 2016. The improvement was primarily due to the absence of a goodwill impairment charge of $595 million in the year ago comparable period. The reported quarter profit was also aided by higher sales volume and favorable price realization.

During Q4 2017, Caterpillar’s Energy & Transportation segment’s sales advanced 22.3% to $4.71 billion compared to $3.85 billion in Q4 2016. The increase was primarily due to higher sales volume across all applications. The Energy & Transportation segment’s profit was $881 million in the reported quarter compared to $638 million in the year ago corresponding period, reflecting a growth of 38.1%, primarily attributed to higher sales volume.

Caterpillar’s Financial Products segment’s revenues were $783 million in Q4 2017, representing a growth of 6% on a y-o-y basis. The increase was primarily due to higher average financing rates in North America, higher average earnings assets in Europe, Middle-East, and Africa (EMEA) and Asia/Pacific (APAC), and a favorable impact from intercompany lending activity in North America. The Financial Products segment’s profit was $233 million in Q4 2017 compared to $149 million in Q4 2016. The increase was primarily due to higher gains on sales of securities at Insurance Services, and an increase in net yield on average earnings assets.

Cash Matters

Caterpillar’s Machinery, Energy, and Transportation (ME&T) operating cash flow was $1.3 billion during Q4 2017 and $5.5 billion for the full year FY17. The Company’s ME&T debt-to-capital ratio was 36.7% at the end of 2017 compared to 41.0% at the end of 2016.

Caterpillar ended FY17 with an enterprise cash balance of $8.3 billion. In the reported quarter, the Company made a discretionary contribution to US pension plans of $1.0 billion, and a payment for early debt retirement of $958 million.

2018 Outlook

For the full year FY18, Caterpillar is forecasting profit per share to be in a range of $7.75 to $8.75. Excluding restructuring costs of about $400 million, the Company is expecting adjusted profit per share to be in the band of $8.25 to $9.25.

Stock Performance Snapshot

January 30, 2018 – At Tuesday’s closing bell, Caterpillar’s stock was slightly up 0.73%, ending the trading session at $163.76.

Volume traded for the day: 8.67 million shares, which was above the 3-month average volume of 4.23 million shares.

Stock performance in the last month – up 3.37%; previous three-month period – up 18.83%; past twelve-month period – up 69.19%; and year-to-date – up 3.92%

After yesterday’s close, Caterpillar’s market cap was at $98.77 billion.

Price to Earnings (P/E) ratio was at 130.28.

The stock has a dividend yield of 1.91%.

The stock is part of the Industrial Goods sector, categorized under the Farm & Construction Machinery industry.

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