Caterpillar, the construction and mining equipment giant, topped Q4 earnings estimates despite light sales. But the global economic bellwether expects slightly lower sales in 2025, contrary to analyst estimates. CAT stock fell in early Thursday stock market action, combining with Microsoft to pull the Dow Jones Industrial Average slightly lower.
Caterpillar sales have now slipped for four straight quarters, and that appears to set to continue. Earnings per share have trended lower for two quarters. Still, CAT stock closed within 6% of a record high on Wednesday.
However, United Rentals easily topped Q4 sales estimates with its late Wednesday report and signaled that it expects record sales in 2025. URI stock was slightly higher.
Caterpillar Earnings
Results: Earnings per share dipped 2% to $5.14 a share, topping estimates by 11 cents. Revenue fell 5% to $16.2 billion vs. $16.5 billion forecasts.
Construction industry sales fell 8%. North America sales fell amid lower volume and unfavorable price realization. Resource industry sales were off 9%. Energy and transportation sales inched lower, but segment profit rose slightly, amid an increase in sales of large reciprocating engines, primarily for data-center applications.
Outlook: Caterpillar sees "slightly lower" full-year sales for 2025 compared to the 2024's $64.8 billion total. Analysts had been expecting just over $66 billion for this year, according to the FactSet consensus.
CAT, URI
CAT stock slid nearly 5% to 374 in premarket action. That would put Caterpillar below its 50-day moving average. The Dow heavyweight has been working on a 418.50 consolidation buy point.
URI edged up 0.6%, as it tries to regain its 50-day line.
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