Construction, mining, and engineering equipment manufacturer Caterpillar (NYSE:CAT) gained in pre-market trading after the company announced its fourth-quarter results. The firm reported Q4 adjusted earnings of $5.23 per share, exceeding consensus estimates of $4.76 per share.
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CAT also posted revenues of $17.1 billion in Q4, an increase of 3% year-over-year. This beat Street estimates of $17.06 billion. In the fourth quarter, the company’s Construction segment saw sales of $6.52 billion, down 5% year-over-year, mainly due to lower sales volumes despite better prices. Sales volumes declined due to changes in dealer inventories.
In contrast, the Energy and Transportation business posted sales of $7.67 billion, up 12% year-over-year. This can be attributable to increased volume and favorable pricing across most applications, except industrial.
What Is the Future Price of CAT Stock?
Analysts remain cautiously optimistic about CAT, with a Moderate Buy consensus rating based on four Buys, five Holds, and one Sell. CAT has gone up by more than 20% over the past year, and the average CAT price target of $279.96 implies a downside potential of 11.3% at current levels.
