Why Caterpillar Stock Is Down Today
Caterpillar (NYSE: CAT) used pricing power to offset soft demand in the most recent quarter, and is still fighting through supply chain issues. The results weren't bad, but investors sent the shares down as much as 5.6% in early Tuesday trading.
Caterpillar's massive construction and mining equipment is vital to a number of different industries, but carries prices high enough that customers will sometimes defer new orders when times are tight. The company also has complex supply chains to manage. With that backdrop, investors were eager to see how Caterpillar fared in the second quarter.
Before markets opened, Caterpillar reported adjusted earnings of $3.18 per share on revenue of $14.25 billion. The earnings number beat analyst expectations for $3.01 per share, but the revenue figure was about $100 million less than consensus. Revenue was up 11% compared to the second quarter of 2021.
Source Fool.com
