Caterpillar (CAT) Misses Q3 EPS by 22c; Lowers Outlook

Caterpillar (NYSE: CAT) reported Q3 EPS of $2.66, $0.22 worse than the analyst estimate of $2.88. Revenue for the quarter came in at $12.8 billion versus the consensus estimate of $13.57 billion.

GUIDANCE:

Caterpillar sees FY2019 EPS of $10.90-$11.40, versus the consensus of $11.70.

• The company is lowering its full-year profit per share outlook range to $10.90 to $11.40, compared to the previous outlook which was at the low end of the $12.06 to $13.06 range. Both ranges include the first-quarter $0.31 per share discrete tax benefit. The revised guidance now assumes modestly lower sales in 2019. The company remains focused on maintaining a competitive and flexible cost structure, including managing production levels.
• "In the fourth quarter, we now expect end-user demand to be flat and dealers to make further inventory reductions due to global economic uncertainty," said Umpleby. "Caterpillar's improved lead times, along with these dealer inventory reductions, will enable us to respond quickly to positive or negative developments in the global economy in 2020. We are expanding our offerings and investing in services, including digital capabilities, to drive long-term profitable growth, while continuing to achieve our Investor Day targets for improved financial performance."
• The outlook does not include a mark-to-market gain or loss for remeasurement of pension and other postemployment benefit plans, which will be excluded from adjusted profit per share in the fourth quarter of 2019 along with any other material discrete items.

For earnings history and earnings-related data on Caterpillar (CAT) click here.

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