- Caterpillar Inc. (NYSE:CAT) reported third-quarter sales growth of 25% year-over-year to $12.397 billion, missing the consensus of $12.48 billion.
- The increase reflects higher sales volume driven by higher end-user demand for equipment and services and favorable price realization.
- Segment Revenue: Construction Industries $5.26 billion (+30% Y/Y), Resource Industries $2.41 billion (+32% Y/Y), Energy & Transportation $5.08 billion (+22% Y/Y).
- Adjusted EPS improved to $2.66 compared to $1.52 in 3Q20, beating the consensus of $2.20.
- The operating profit increased by 68.9% Y/Y to $1.66 billion, and the margin expanded by 345 bps to 13.4%.
- Construction Industries’ profit was $859 million (+47% Y/Y) and the Segment profit margin expanded by 190 bps to 16.3%.
- Resource Industries’ profit was $297 million (+78% Y/Y) and segment profit margin expanded by 310 bps to 12.3%.
- Energy & Transportation’s profit was $696 million (+41% Y/Y) and segment profit margin expanded by 190 bps to 13.7%.
- “Our global team continues to execute our long-term strategy for profitable growth while working to mitigate supply chain challenges as we serve our customers,” said Chairman and CEO Jim Umpleby.
- Caterpillar generated a YTD operating cash flow of $5.79 billion. It ended the quarter with $9.47 billion of cash and cash equivalents.
- The company returned $2 billion to shareholders through dividends and share repurchases in the quarter.
- Caterpillar expects stronger sales in 4Q21 following normal seasonality. It expects a seasonal pattern of lower adjusted operating profit margin in Q4 vs. Q3.
- Price Action: CAT shares are trading higher by 2.96% at $201.75 during the market session on Thursday.
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