Caterpillar Beats Earnings and Revenues in 4Q

Caterpillar Inc. (CAT) announced its fourth quarter (4Q) earnings for fiscal year 2013 (FY13) in pre-market hours, and beat analysts’ estimates for revenues and earnings per share (EPS). The stock is trading is up more than 6%.

The heavy machinery manufacturer posted EPS of $1.54, beating EPS estimates by $0.26. Revenues were down 10.5% year-over-year (YoY), coming in at $14.4 billion, but beat estimates by $790 million for the quarter. The company also announced the intention to complete its $7.5 billion buyback program over the first quarter of 2014, and approved an additional $10 billion in buybacks that will conclude sometime in 2018.

Caterpillar, whose financial performance has been suffering since the beginning of the year, came through at the end after implementing severe cost-cutting measures. The company closed down some plants and reduced activity at others, and laid off roughly 13,000 employees, as it missed its estimates quarter after quarter.

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Caterpillar Company Description

Caterpillar Inc. (CAT) is a global industrial machines manufacturer based out of Peoria, Illinois. The company is classified under three main segments based on the end user markets that it serves. Caterpillar machinery is used in the construction, mining and power generation industries. Caterpillar’s 2012 market cap was $53 billion, and its global sales were $66 billion. The company’s three main segments – Construction Industries, Resource Industries and Power Systems -accounted for almost a third of the company’s revenues. Geographically, the US accounted for 36% of sales followed by Asia Pacific at 26%. CAT serves its end markets through a network of authorized dealers and distributors.Read More: CAT