Construction and mining equipment maker Caterpillar Inc. (CAT) on Monday posted a sharp uptick in third quarter profit and boosted its full-year outlook, sending its shares soaring in premarket trading.
The Peoria, IL-based company reported third quarter net income of $1.14 billion, or $1.71 per share, compared with $792 million, or $1.22 per share, in the year-ago period.
Revenue jumped 41% from last year to $15.7 billion.
On average, Wall Street analysts expected a much smaller profit of $1.54 per share, on lower revenue of $15.03 billion.
Looking ahead, the company said it expects full-year sales to be $58 billion, which is the high end of its previously-announced forecast. It also expects profits at the high end of its prior view.
Caterpillar shares rose $4.65, or +5.1%, in premarket trading Monday.
The Bottom Line
Shares of Caterpillar (CAT) have a 2.11% dividend yield, based on Friday’s closing stock price of $87.39. The stock has technical support in the $76-$80 price area. If the shares can firm up, we see overhead resistance around the $95-$96 price levels.
Caterpillar Inc. (CAT) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.