Caterpillar Q1 Profit Misses, Stock Declines

Caterpillar reported first-quarter adjusted earnings per share of $4.25, missing analyst expectations of $4.35 and marking a significant drop from $5.60 a year earlier. Revenue declined nearly 10% year-over-year to $14.25 billion, falling short of the $14.58 billion consensus estimate. The Machinery, Energy & Transportation segment saw an 11% sales decrease and a 26% drop in operating income, while the Financial Products segment posted modest growth. The weaker results were attributed to softer demand and economic uncertainty, reversing gains from the 2021 U.S. infrastructure law. Caterpillar's stock has declined over the past year, and the company has experienced several negative EPS revisions recently. Despite these challenges, Caterpillar maintained a strong balance sheet and continued shareholder returns through buybacks and dividends.