Caterpillar Says Forecasts 'Too Optimistic,' Stock Prices Hold Steady
Caterpillar cautioned investors gathered at a conference Thurs. that early Wall Street forecasts were “too optimistic” about the year ahead.
Earlier analysts’ consensus from October projected earnings per share of $3.25 and revenue of $38 billion.
Cat Director of Investor Relations Amy Campbell presented company insights at the Credit Suisse Industrials Conference. She stressed concerns about "head winds," citing low commodity prices, weak global economic growth, and abundance of used equipment in North America.
Meanwhile, Cat stock halted trading around the same time the presentation took place. That’s because the company filed an 8-K with the Securities and Exchange Commission. It’s customary for the SEC to halt trading until information about the changes of a company’s status are made public.
When Cat stock reopened a few minutes later, its stock prices dropped slightly. But by 10am, Cat stock traded at $96.39 per share, which marked a new yearly high.
Despite a weakened global economy, Wall Street seems optimistic about the effect of a Trump presidency on the country’s infrastructure and manufacturing economy. Prices of Caterpillar stock have risen 17 percent since the election.