Caterpillar Reports Earnings; Dow Futures Increase
Caterpillar has reported its 4th quarter earnings. The machine manufacturing giant reported an earning of $2.16 per share and revenue of $12.9 billion. Even in the last quarter, the company reported better earnings than expected and revised its revenue projections.
As it reported its earnings, estimators were shocked by the company’s performance. The company reported an earning per share of $2.16, better than the $1.79 expectation. Its revenue was also better than expected as the company was expected to make $11.98 billion. After the company reported its earnings, its stock increased by 4% during pre market trading.
Moreover, the company’s earnings also incorporate a $2.4 billion charge due to the total enactment of the tax reform legislation. Caterpillar was also the 2nd best performing stock on the popular Dow Jones industrial average in the last year. It is also believed that the company could benefit greatly from the Republican tax overhaul that was signed in December.
As it reported its earnings, the S&P 500 and Nasdaq 100 futures increased by 8 points and 37 points. Moreover, with the rise of the company itself, the Dow Futures increased by 100 points. It was all smiles for Caterpillar who performed better than it expected to and it sent shivers all over the futures market, increasing points for S&P 500 and Dow.
While the stock market will be further affected by the reporting of jobless claims and other economic indicators, basic news of Caterpillar’s earnings has had a positive impact on the market so far.
Caterpillar had high sales and other profitable ventures that enabled the company to have a solid performance in the 4th quarter. The company was said to report lower revenue than it did while its earnings per share also increased. As the company reported its earnings, there was dramatic increase in Dow Jones and others.
While there might be some challenges in the future for Caterpillar, its earnings in the 4th quarter only goes on to proof the legitimacy of the company and its head on approach to accumulate wealth and revenue every quarter.