Caterpillar reported first-quarter earnings and revenue on Tuesday that smashed Wall Street’s expectations.
Here’s what the firm reported versus what the Street was expecting:
- EPS: $1.28 versus 62 cents, according to a consensus estimate from Thomson Reuters.
- Revenue: $9.822 versus $9.271 billion, expected by Thomson Reuters.
Caterpillar’s stock was up 5 percent immediately following the news.
Caterpillar is expecting modest growth in its construction business for 2017. The company is expecting to benefit from a recovery in the Chinese market for construction equipment.
Wall Street is also closely watching President Donald Trump’s policies to determine their impact on the company. While a trillion-dollar infrastructure plan would likely boost companies involved in construction, Caterpillar’s international business is vulnerable to any trade-restricting policies.
Shares of Caterpillar have rallied more than 17 percent since November, when Trump won the election. Almost 100 days into his presidency, Trump and the Republican-controlled Congress have yet to introduce a major infrastructure initiative. Caterpillar has said that even if such legislation were introduced, the company does not expect to see a material benefit until at least next year.
Caterpillar announced recently that it will be relocating from its home in Peoria, Illinois, to a new headquarters in the Chicago area, as it looks to tap more talent. Most of the 12,000 manufacturing jobs in Peoria will remain, the company said.