Caterpillar misses big on earnings and guidance.

Advertisement
Caterpillar misses big on earnings and guidance.

Security guards stand in front of heavy machinery of Caterpillar at Bauma China, the International Trade Fair for Construction Machinery in Shanghai, China November 27, 2018.

REUTERS/Aly Song

Security guards stand in front of heavy machinery of Caterpillar at Bauma China, the International Trade Fair for Construction Machinery in Shanghai, China November 27, 2018.

Advertisement
  • Caterpillar reported fourth-quarter earnings Monday that missed Wall Street expectations.
  • Shares fell nearly 6% early Monday, dragging down Dow futures by around 0.7%.
  • Watch Caterpillar trade here.

Caterpillar reported fourth-quarter earnings Monday morning that missed Wall Street expectations, sending shares down nearly 6% ahead of the opening bell.

The industrial giant reported adjusted earnings per share of $2.55 on revenue of $14.34 billion. Analysts surveyed by Bloomberg had expected adjusted EPS of $2.99 on revenue of $14.36 billion.

Caterpillar expects full-year profits of $11.75 to $12.75 a share, compared to analysts' anticipated guidance of $12.72 per share, and said its outlook assumes "modest" sales growth.

"Our outlook assumes a modest sales increase based on the fundamentals of our diverse end markets as well as the macroeconomic and geopolitical environment," said Jim Umpleby, chairman and CEO, in a statement. "We will continue to focus on operational excellence, including cost discipline, while investing in expanded offerings and services to drive long-term profitable growth."

Advertisement

Its "modest" outlook could be considered a warning for broader economic health at a time when calls for a slowdown are in full swing. The company's activity is considered a global proxy for construction activity given its vast usage around the world.

Caterpillar was up 8% this year through Friday, but was down 16% in the past year.

Now read:

Caterpillar shares.

Markets Insider

Caterpillar shares.

Get the latest Caterpillar stock price here.

Advertisement
{{}}