Construction and mining equipment maker Caterpillar Inc (NYSE:CAT) comfortably topped market forecasts with its second quarter results.
The shares were up 4.6% in pre-market to US$113.20 and later added over 5% in the regular session after the company unveiled net income of US$114mln in the three months to the end of June, which was up 12% year-on-year.
Underlying earnings per share clocked in at US$1.49, up from US$1.09 in the corresponding period of 2016, and well ahead of the consensus forecast of US$1.26.
Sales and revenues surged to US$11.33bn from US$10.34bn the year before.
The company has made a habit of late of raising expectations and it was at it again today, lifting its full-year sales and revenues guidance range to US$42bn – US$44bn from its previous guidance of US$38bn – US$41bn.
Earnings per share for the whole of 2017 are now expected to land somewhere around US$3.50, assuming Caterpillar’s sales form at the mid-point of its guidance range, with adjusted earnings per share tipped to weigh in at about US$5.
Previously, the company’s guidance for adjusted earnings per share had been US$3.75, or thereabouts.
“Our team delivered an impressive quarter. As demand increased, we continued to control costs and generated higher profit margins,” said Caterpillar’s chief executive officer, Jim Umpleby.
“While a number of our end markets remain challenged, construction in China and gas compression in North America were highlights in the quarter. Mining and oil-related activities have come off of recent lows, and we are seeing improving demand for construction in most regions,” Umpleby divulged.