Caterpillar Inc. (NYSE: CAT) on Friday posted an 8% decline in the net sales in Q4 to $13.1 billion, as strong cost control hurt end-user demand. The topline also missed analysts’ projection of $13.41 billion.
Meanwhile, the manufacturing giant posted a Q4 profit of $ 2.63 per share, beating the Wall Street view of $2.37 per share.
CEO Jim Umpleby said, “We expect continued global economic uncertainty to pressure sales to users in 2020 and cause dealers to further reduce inventories. We have improved our lead times and remain prepared to respond quickly to any positive or negative changes in customer demand.
Operating profit margin was 14.1% for the fourth quarter of 2019, compared with 13.1% for the fourth quarter of 2018.
For the fiscal year 2020, the company currently expects adjusted EPS of $8.50 – $10.00.
Caterpillar shares were over 1.5% immediately following the announcement, thanks to the earnings beat. Over the last 12 months, CAT stock has mostly traded sidewise and is currently up about 2%.
The massive slowdown in the IPO market continued in the second half as the challenges posed by high inflation and interest rate hikes weighed on investor confidence. Meanwhile, there is
The automotive sector is one of the worst affected by the combination of high inflation and rising interest rates. Consumers have become more cautious and are prioritizing their purchases with
The IPO market has witnessed muted activity this year, and things don’t seem to have improved in the second half. The upcoming public listing of video game technology firm Ultimax