Updated: October 24, 2014 | 9:52 am EDT

Caterpillar, CAT, Quarterly Earnings Miss Expectations

October 23
3:33 pm 2013

Caterpillar, CAT, Quarterly Earnings Miss ExpectationsOn Wednesday Caterpillar CAT +0.16% (NYSE:CAT) announced their quarterly earnings results. They reported a $1.45 per share earnings, which has missed the analysts’ estimates of $1.71, by a total of $0.26. The revenue of the company was situated at $13.42 billion this quarter, being compared to the estimate of $14.49 billion.

In the past few quarters, this pattern has begun to surface, which has been pushed into existence by the continually weak economy around the globe that has stifled the demand from a number of the heavy equipment producers mining customers. In all of the fast four quarters, Caterpillar has missed the forecasts for their earnings and has been forced to decrease their yearly forecasts. Prior to these consecutive missed earnings, Caterpillar only missed their expectations three times in a total of 20 quarters.

On Wednesday Caterpillar opened at $89.17. The 52 week low was $79.49 and the high for the company was $99.70. There were also some unusual trading options seen by Caterpillar on Tuesday. Investors had purchased over 34,025 put options for the stock. This equated to an increase of 271 percent, which is compared to the typical volume of 9,169 put options.

The company has also declared a specific quarterly dividend is scheduled for Wednesday, the 20th of November. Current stockholders will be given a total dividend that equals $0.60 per share on Monday, the 21st of October. This will represent a total dividend of $2.40 for the annualized basis that equates to a yield of 2.69 percent.

To compensate for some of the lost revenue that Caterpillar has experienced, they have laid off over 13,000 workers and put a few thousand others on furlough, in addition to shutting down a number of plants. This strategy has saved the company approximately $700 million in total costs. Capital expenditures were also cut by about $400 million.

Caterpillar Inc manufactures a number of different types of mining and construction equipment, gas turbines for industrial businesses, diesel-electric locomotives and natural gas and diesel engines.

Phil Barnes

Phil Barnes

Phil is a business, technology, investing and stock market reporter for The NYSE Bulletin.

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CAT $99.11 $ 0.16 (+0.16%) As of 10/24/2014, 10:28am EDT