Monday, June 18, 2012

Caterpillar Powers Ahead on Strong Earnings and Guidance

Machine-maker Caterpillar (CAT) posted a very strong quarter, and management sees the world economy growing faster in the coming year, which should boost earnings even more. Shares rose 2.8% in morning trading.

Caterpillar posted $2.32 of EPS, against expectations for $1.73. Profit rose 60% year over year, and results were aided by the company’s purchase of mining company Bucyrus last year.

Caterpillar projected 2012 earnings of $9.25 per share, ahead of analysts’ expectations for $9.06. The company also raised the low end of its revenue guidance, and now projects 13% to 20% revenue growth for 2012.

Caterpillar sees the global economy growing 3.3% in 2012, an acceleration from 2.8% growth in 2011.

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