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 company reported $0.85 earnings per share (EPS) for the quarter, beating the Zacks' consensus estimate of $0.77 by $0.08.
The construction and mining equipment maker lowered its outlook for the year and shares of Caterpillar slipped almost 2 percent before the market opened.
Caterpillar, Inc. (NYSE:CAT) reported sales (ttm) of 41.8 Billion, whereas, 13 number of analysts estimated the mean sale of 10427.7 million.
"While we are seeing early signals of improvement in some areas, we continue to face a number of challenges", Oberhelman said. While about 70% below the prior peak in 2014, the US active rig count is up 37% since May of 2016.
In its preliminary outlook for fiscal year 2017, Caterpillar said that "sales and revenues will not be significantly different than 2016".
"The ongoing weakness in many key end markets Caterpillar serves has resulted in more aggressive cost reduction and restructuring actions than we anticipated in our announcement last September", the company said, adding that "additional actions could still be taken as Caterpillar continues to align its cost structure with the economic conditions in its industries".
Caterpillar Inc insider Jim Umpleby will become chief executive of the heavy equipment maker on January 1, faced with the challenge of reversing a multiyear sales decline triggered by the global commodities slump.
Sales and revenues for the third quarter were $9.2 billion. Ratings and estimates change daily and thus the numbers may differ slightly if a new report has been issued within the last 24-hours.
Global sales by CAT's energy and transportation division fell 25%, the same as in August, including respective declines of 44%, 26% and 15% in transportation, power generation, and oil and gas products.
The construction industry and Caterpillar's market position have continued to improve in China, and the company is expecting a continued small improvement in 2017. The company said the adjustment, which wasn't included in this year's outlook, could amount to a hit of $2 billion to this year's posttax earnings, according to the company. The world's biggest maker of construction and mining equipment cut its 2016 earnings guidance and painted a dim picture for next year.
He will be replaced by another veteran, Jim Umpleby, who has been with Caterpillar for 35 years. Caterpillar also pointed to global economic uncertainty, such as the Brexit vote.
Caterpillar Inc. has a 52 week low of $56.36 and a 52 week high of $89.87.
"At some point, and I think we're getting closer to that point, our business will turn up", Oberhelman said.
Oberhelman said in a company release that there is an abundance of used construction equipment in North America, as well as idle locomotives. During his time as Chairman and CEO, Oberhelman has reinvigorated the company's focus on serving customers while also driving a culture of quality and safety.