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Investors Feeling Safe Haven with Caterpillar Inc. (NYSE:CAT) in Buy List

Caterpillar Inc. (NYSE:CAT) shares were on the rise with 0.09% during Tuesday morning session after the company declared third-quarter 2016 results ahead markets opened Tuesday. The heavy equipment company reported revised diluted earnings per share (EPS) of $0.85 on revenues of $9.16 billion. In the similar quarter a year earlier, the firm declared adjusted EPS of $1.05 on revenues of $10.96 billion. Q3 outcomes also contrasted to the Thomson Reuters consensus forecasts for EPS of $0.76 and $9.87 billion in revenues. The firm’s adjusted EPS omitted 2016 third-quarter reformation charges of $0.37 per share.

OUTLOOK SLICED

Caterpillar has dropped its guidance for complete year revenues from a former range of $40.0 billion to $40.5 billion to near $39 billion. EPS is now estimated at $3.25, omitting reformation costs. The former EPS forecast had been $3.55. Reformation costs are now estimated at almost $800 million, superior as compared the $700 million forecast the firm gave at the end of the second quarter.

CEO Doug Oberhelman Remarks:

In the Q3, in spite of a $1.8 billion drop in sales and revenues, their operating profit recovery was expressively higher as compared to their target range. Lesser variable manufacturing expense of $234 million and lesser period costs of $420 million allowed us to compensate much of the negative impact from a weak sales environment and persist investment in products and digital capabilities. While they were observing initial signals of enhancement in few areas, they persists to witness a lot of challenges.

In the trading front, Caterpillar’s shares moved down almost 1.9% in Tuesday’s premarket session, at $84.38 in a 52-week range of $56.36 to $89.87. The 12-month consensus price target on the stock was $79.56 ahead of this report.

 

About Devon Leftovich

Devon Leftovich is an entrepreneur. He has been writing and editing professionally for over six years. He is admin editor and senior content writer of SWR. However, he has determined to give investors something rare, a dignified partner who can manage money with integrity and a clear conscience about the degree of due diligence behind investment decisions. He said, "I love the financial world because it is like one big puzzle and I hope we the SWR help each other out to solve the puzzle to help us realize our dreams." Interests: Analysis of different Companies; including news and analyst rating updates. He performs analysis of Companies and publicizes important information for investor/traders community. Stocks long-term and short-term holding views, Tech Stocks

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