Caterpillar beats by $0.39, beats on revs; raises FY14 EPS above consensus, reaffirms revs above consensus
Reports Q1 (Mar) earnings of $1.61 per share, excluding non-recurring items, $0.39 better than the Capital IQ Consensus Estimate of $1.22; revenues rose 0.2% year/year to $13.24 bln vs the $13.01 bln consensus.
- Co raises guidance for FY14, sees EPS of $6.10 vs. $5.85 Capital IQ Consensus Estimate, up from $5.85; sees FY14 revs of $56 bln vs. $55.62 bln Capital IQ Consensus Estimate.
- The co's outlook for sales and revenues remains unchanged at $56 billion in a range of plus or minus 5%. However, there are a range of macro-economic and geo-political uncertainties that could slow the growth of global GDP and impact the sales of Caterpillar's products in 2014. These potential events are a concern, and the company will monitor them closely and take actions to respond if needed.
- Operating profit for the first quarter of 2014 was $1.398 billion, an increase of $180 million from the first quarter of 2013. The increase was primarily the result of lower manufacturing costs, decreased SG&A and R&D expenses and the favorable impact of currency.
- These favorable impacts were partially offset by higher restructuring costs of $142 million and lower sales volume. Additionally, Financial Products' operating profit was lower primarily due to the absence of favorable reserve adjustments at Caterpillar Financial Insurance Services.