Let’s dig into the relative performance of Caterpillar (NYSE:CAT) and its peers as we unravel the now-completed Q4 construction machinery earnings season.
Automation that increases efficiencies and connected equipment that collects analyzable data have been trending, creating new sales opportunities for construction machinery companies. On the other hand, construction machinery companies are at the whim of economic cycles. Interest rates, for example, can greatly impact the commercial and residential construction that drives demand for these companies’ offerings.
The 4 construction machinery stocks we track reported a slower Q4. As a group, revenues missed analysts’ consensus estimates by 1.4%.
While some construction machinery stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.6% since the latest earnings results.
With its iconic yellow machinery working on construction sites, Caterpillar (NYSE:CAT) manufactures construction equipment like bulldozers, excavators, and parts and maintenance services.
Caterpillar reported revenues of $16.22 billion, down 5% year on year. This print fell short of analysts’ expectations by 2%. Overall, it was a softer quarter for the company with a significant miss of analysts’ adjusted operating income estimates and a miss of analysts’ organic revenue estimates.
«I’m proud of our global team’s strong performance in 2024 as they delivered record adjusted profit per share and strong ME&T free cash flow,» said Caterpillar Chairman and CEO Jim Umpleby.
Caterpillar delivered the slowest revenue growth of the whole group. Unsurprisingly, the stock is down 13.4% since reporting and currently trades at $340.48.
Is now the time to buy Caterpillar? Access our full analysis of the earnings results here, it’s free.
Inventing the first ever double-barrel hot-mix asphalt plant, Astec (NASDAQ:ASTE) provides machines and equipment for building roads, processing raw materials, and producing concrete.
Astec reported revenues of $359 million, up 6.5% year on year, falling short of analysts’ expectations by 4%. However, the business still had a strong quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Astec achieved the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 14.8% since reporting. It currently trades at $35.85.
Is now the time to buy Astec? Access our full analysis of the earnings results here, it’s free.
Story Continues
