Caterpillar Earnings Beat Based on Cost Cutting; Revenues Slip

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© Reuters. Caterpillar Earnings Beat, Revenue Misses In Q4© Reuters. Caterpillar Earnings Beat, Revenue Misses In Q4

Investing.com – Caterpillar reported better than expected fourth quarter Friday, but this result was based largely on successful cost cutting as revenue fell short of expectations.

Caterpillar (NYSE:) announced earnings per share of $2.63 on revenue of $13.14 billion. Analysts polled by Investing.com expected EPS of $2.38 on revenue of $13.49 billion.

“In the fourth quarter, strong cost control more than offset lower-than-expected end-user demand,” said Jim Umpleby, Caterpillar Chairman and CEO. “Our margin performance reflected our diligent focus on maintaining a flexible and competitive cost structure.”

Investors often look to the heavy machinery company to gauge the health of U.S. manufacturing. At the height of the U.S.-China trade war last year, Caterpillar took a big hit from higher material costs including tariffs, while the reduced demand from China is likely to have hit sales.

Caterpillar (NYSE:) shares are down 8.3% from the beginning of the year, still down 10% from its 52 week high of $150.55 set on January 2.

Caterpillar follows other major Capital Goods sector earnings this month

Caterpillar’s report follows an earnings missed by Boeing on Wednesday, who reported a loss per share of $2.33 on revenue of $17.91 billion, compared with forecasts EPS of $0.6 on revenue of $21.65 billion.

United Technologies beat expectations on Tuesday with fourth quarter EPS of $1.94 on revenue of $19.55 billion, compared with a forecast for EPS of $1.84 on revenue of $19.4 billion.

Stay up-to-date on all of the upcoming earnings reports by visiting Investing.com’s earnings calendar

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