Caterpillar Inc’s (NYSE:CAT) stock is seen rising around 3% in premarket dealing on Thursday as fourth quarter results came in above market expectations.
The heavy machinery firm told investors it earned US$2.16 per share in the three months to the end of December, beating Wall Street forecast of around US$1.80.
READ: Caterpillar shares surge after third quarter beats expectations; Chinese provides boost
Fourth quarter revenue was reported at US$12.9bn, up from US$9.6bn in the same period the year before, with the company claiming “broad-based sales recovery” has gained momentum during the fourth quarter.
Significantly, Caterpillar said it expected growth in many of its end markets during 2018.
The results did, however, include a US$2.4bn charge related to the US tax reform legislation.
Caterpillar reported a bottom-line loss of US$2.18 per share, widened from a US$2.00 loss per share in the fourth quarter of 2016, though it was the adjusted figure (excluding the tax charge, restructuring costs, some mark-to-market pension losses and other items) came in at the aforementioned US$2.16 per share.
Key markets improved in 2017
“After four challenging years, many key markets improved in 2017, and our global team delivered strong results,” said chief executive Jim Umpleby.
He added: “We are in the early stages of implementing our strategy for profitable growth. In 2018, we expect to make additional investments in the expanded offerings and services important for Caterpillar’s long-term success.
“We will use our Operating & Execution Model to bias resources to areas that represent the greatest opportunity for return on our investments.”
On Wall Street, Caterpillar was up US$4.71 or 2.8% in premarket with shares changing hands at US$173.05.