Caterpillar Inc.'s third-quarter profit surged on demand for construction equipment, topping Wall Street expectations.
The Peoria, Illinois-based company boosted its guidance, citing strong oil and gas markets in North America along with construction in China. Its shares surged, ending Tuesday up $6.56, or 5 percent, to $138.24.
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Profit nearly quadrupled to $1.06 billion, or $1.77 per share. Earnings, adjusted for restructuring costs, came to $1.95 per share. The average estimate of eight analysts surveyed by Zacks Investment Research was for earnings of $1.22 per share.
Revenue surged 25 percent to $11.41 billion while six analysts surveyed by Zacks expected $10.61 billion.
Construction equipment revenue rose 37 percent to $4.85 billion, followed by energy and transportation equipment rising 12 percent to $3.96 billion. Those segments were the key revenue drivers during the quarter.
Caterpillar now expects full-year adjusted earnings to be $6.25 per share, up from a previous estimate of $5 per share. It expects revenue of $44 billion.
Caterpillar shares have risen 42 percent since the beginning of the year, while the Standard & Poor's 500 index has risen 15 percent. The stock has climbed 53 percent in the last 12 months.
Elements of this story were generated by Automated Insights using data from Zacks Investment Research. Access a Zacks stock report on CAT at https://www.zacks.com/ap/CAT