Caterpillar Inc. shares surged 4.5% in premarket trade Tuesday, after the company blew past estimates for the second quarter and raised its guidance. The maker of construction and mining equipment said it had net income of $802 million, or $1.35 a share, in the quarter, up from $550 million, or 93 cents a share, in the year-earlier period. Adjusted per-share earnings came to $1.49, ahead of the FactSet consensus of $1.26. Revenue rose to $11.3 billion from $10.3 billion, also ahead of the FactSet consensus of $10.9 billion. "While a number of our end markets remain challenged, construction in China and gas compression in North America were highlights in the quarter," Chief Executive Jim Umpleby said in a statement. "Mining and oil-related activities have come off of recent lows, and we are seeing improving demand for construction in most regions." The company is now expecting full-year sales to range from $38 billion to $41 billion, or a midpoint of $39.5 billion. The company is expecting full-year EPS of about $3.50 at the midpoint of sales, or $5.00 a share on an adjusted basis. shares have gained 16.6% in 2017, while the Dow Jones Industrial Average has gained 9% and the S&P 500 has gained 10%.
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