REUTERS/Aly Song
- Caterpillar shares fell early Wednesday after the construction-machinery giant reported first-quarter results that topped Wall Street estimates.
- Shares dipped after Caterpillar’s CFO said the company would lose a "little bit" of its market share in China, according to a Bloomberg report.
- Watch Caterpillar trade live.
Caterpillar shares fell by as much as 3.5% early Wednesday after the construction-machinery giant reported first-quarter results that beat estimates.
Shares dipped after CFO Andrew Bonfield said the company was set to lose a "little bit" of its market share in China this year, according to Bloomberg.
Caterpillar raised its profit-per-share outlook for the rest of this year, to a range between $12.06 and $13.06, above the $11.75 to $12.75 it had previously expected. Expectations for overall 2019 performance, however, was left unchanged.
Here’s what Caterpillar reported compared with what analysts polled by Bloomberg were expecting:
- Adjusted earnings per share (EPS): $2.94 versus $2.85.
- Revenue: $13.47 billion versus $13.4 billion.
Caterpillar is often seen as a bellwether for global growth and industrial activity given its usage in a wide range of construction projects in major regions.
"We are not big believers that the global economy is going to bounce-back in a major way, but if we’re wrong, CAT is going to be a very attractive name," Matt Maley, an equity strategist at Miller Tabak, told clients on Wednesday.
The company also bought back $751 million of its stock in the first-quarter. Caterpillar shares have risen 12% through Tuesday’s market close.
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Source: Business Insider – rungarino@businessinsider.com (Rebecca Ungarino)