Caterpillar Inc. (CAT) exceeded expectations with its second-quarter earnings, driven by strong sales volume, increased pricing, and improved margins. The construction and mining equipment manufacturer’s stock also hit a new high, growing by 0.2% in premarket trading following Monday’s record close.
Impressive Financial Performance
During the second quarter, Caterpillar’s net income soared to $2.92 billion, or $5.67 per share, compared to $1.67 billion, or $3.13 per share, in the same period last year. Adjusted for nonrecurring items, earnings per share stood at $5.55, far surpassing the FactSet consensus of $4.57.
Furthermore, the company achieved robust revenue growth of 21.6% to reach $17.32 billion, exceeding the FactSet consensus of $16.46 billion. Notably, energy and transportation revenue surged by 27% to $7.22 billion, construction industries revenue rose by 19% to $7.15 billion, and resource industries revenue increased by 20% to $3.56 billion.
Margin Improvement
Caterpillar also witnessed a significant improvement in its operating profit margin, which rose from 13.6% to an impressive 21.1%.
As a result of its remarkable financial performance, Caterpillar’s stock has risen by a remarkable 22.1% over the last three months, while the Dow Jones Industrial Average (DJIA) has only grown by 4.4%.
