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The company holds a portfolio including precious, base and strategic metal exploration in North America, Africa, Saudi Arabia and Australia.
In a market hungry for good news, global economic bellwether Caterpillar Inc.’s strong quarterly results and upbeat outlook were rewarded handsomely.
Shares of the mining and construction equipment maker closed up 7.7% at $212.14 on Thursday, notching their biggest gain following an earnings report since April 2017. The rally added to an already great run for the stock, which is up 2.6% this year, compared to the S&P 500 Index’s 20% decline.
The company’s third-quarter profit and revenue both topped analysts’ estimates, and it expects a strong adjusted operating profit margin for the last quarter of the year.
Caterpillar’s resilient performance also helps calm investors as they frantically read the tea leaves of corporate earnings in a bid to understand if the global economy is going to slip into a recession. The company said strong demand for its machinery supported higher prices, helping to more than offset the erosion from rising raw-material costs that have plagued companies across sectors.
That, along with robust US economic data Thursday, injected some optimism into markets.
“Despite all the economic uncertainty out there, this was a really strong report with an across the board beat,” Bloomberg Intelligence analyst Christopher Ciolino said. “It should allay some concerns about a potential downturn as the industrial economy remains resilient with few signs of slowing.”
(By Esha Dey)
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