=Caterpillar (CAT) reported earnings on Tue 25 Apr 2017 (b/o)

Caterpillar beats by $0.65, beats on revs; guides FY17 EPS above consensus, revs above consensus:

• Reports Q1 (Mar) earnings of $1.28 per share, excluding non-recurring items, $0.65 better than the Capital IQ Consensus of $0.63. Excluding restructuring costs, first-quarter 2017 profit per share was $1.28, double first-quarter 2016 profit per share excluding restructuring costs of $0.64 per share; revenues rose 3.8% year/year to $9.82 bln vs the $9.27 bln Capital IQ Consensus.
  • The increase was primarily due to higher sales volume, with the most significant increase in Resource Industries mostly due to higher end-user demand for aftermarket parts. Sales volume for Energy & Transportation increased slightly; Construction Industries' sales volume was about flat; Financial Products' segment revenues increased 2 percent.
  • Asia/Pacific sales increased 12 percent primarily due to an increase in construction equipment sales in China; Higher commodity prices and increased mining production favorably impacted demand for aftermarket parts in Australia; Sales increased 14 percent in Latin America primarily due to stabilizing economic conditions; North America sales were flat as higher demand for aftermarket parts was offset by lower end-user demand for new equipment and the unfavorable impact of changes in dealer inventories as dealers increased inventories more in the first quarter of 2016 than in the first quarter of 2017.
• Co issues upside guidance for FY17, sees EPS of approx $3.75, excluding non-recurring items, vs. $3.26 Capital IQ Consensus Estimate; sees FY17 revs of $38-41 bln (Prior $36-39 bln) vs. $38.24 bln Capital IQ Consensus Estimate.
  • Restructuring costs expected in 2017 are significantly higher than the prior outlook primarily due to ongoing manufacturing facility consolidations. The company expects to incur about $1.25 billion of restructuring costs in 2017, an increase of $750 million from the prior outlook, as the current outlook now includes restructuring costs for recently announced actions at manufacturing facilities in Gosselies, Belgium, and Aurora, Illinois.