Caterpillar beats estimates, bumps up forecast

[July 25, 2017]  (Reuters) - Caterpillar Inc reported quarterly profit and revenue that handily beat estimates, helped by strong demand for its construction equipment in China, and the company raised its outlook for the year, sending its shares up 5 percent.

The logo of the company of machinery Caterpillar (CAT) is seen at the site of a future urban project in Vina del Mar, Chile May 23, 2017. REUTERS/Rodrigo Garrido/File Photo

The world's biggest construction and mining equipment maker said it now expects 2017 sales and revenue of $42 billion to $44 billion, up from its previous forecast of $38 billion to $41 billion.

Caterpillar said it now expects 2017 adjusted earnings of about $5 per share, up from the $3.75 it had previously forecast.

Analysts on average were expecting 2017 earnings of $2.95 per share on revenue of $40.60 billion, according to Thomson Reuters I/B/E/S.

Profit attributable to common stockholders rose to $802 million, or $1.35 cents per share, in the second quarter ended June 30, from $550 million, or 93 cents per share, a year earlier.

Excluding items, the company earned $1.49 per share, compared with the average estimate of $1.26.

Total sales and revenue rose 9.6 percent to $11.33 billion, beating the estimate of $10.93 billion.

(Reporting by Rachit Vats and Sweta Singh in Bengaluru; Editing by Saumyadeb Chakrabarty)

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