CATERPILLAR INC Reports Q4 FY2022 Earnings Results for Period Ending December 31, 2022

Earnings Overview

Caterpillar Inc ($NYSE:CAT) announced their fourth quarter FY2022 financial results on January 31 2023, with total revenue of USD 1.4 billion, a decrease of 31.6% compared to the same period in the previous year. Net income was USD 16.6 billion, an increase of 20.3% from the same quarter of the prior year.

Transcripts Simplified

Caterpillar Inc. reported fourth quarter sales and revenues of $16.6 billion, an increase of 20% from the prior year. Operating profit was $1.7 billion, up 4% from the prior year. Adjusted operating profit was $2.8 billion, up $1.2 billion versus the prior year and the adjusted operating profit margin was 17.0%. Adjusted profit per share increased by 43% to $3.86 in the fourth quarter compared to $2.69 in the same period last year.

The provision for income taxes in the fourth quarter, excluding specific items, reflected a global annual effective tax rate of approximately 23%. Finally, there was an unfavorable non-cash foreign currency impact within other income and expense of $0.41 related to ME&T balance sheet translation in the quarter.

About the Company

Income Snapshot

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Cash Flow Snapshot

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Balance Sheet Snapshot

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Key Ratios Snapshot

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Share Price

On Tuesday, Caterpillar Inc reported their Q4 FY2022 earnings results for the period ending December 31, 2022. The stock opened at $257.0 and closed at $252.3, representing a 3.5% decrease from the previous closing price of $261.5. The company reported strong growth in the mining and construction equipment segment, which contributed to the overall growth in revenues.

Additionally, the company’s cost of goods sold decreased by 1%, indicating improved operational efficiency. Overall, Caterpillar Inc reported strong performance in the fourth quarter of FY2022, showing an improvement in both profits and revenues. The company’s cost management strategies and focus on expanding their mining and construction equipment line have helped to drive growth in the quarter, positioning them well for future success. Live Quote…

Analysis

At GoodWhale, we have conducted a comprehensive analysis of CATERPILLAR INC‘s financials. We have concluded that CATERPILLAR INC is a low risk investment in terms of financial and business aspects. GoodWhale’s Risk Rating system has detected two risk warnings in the income sheet and balance sheet of CATERPILLAR INC. If you would like to learn more about our analysis and risk rating system, we invite you to register on our website, goodwhale.com. Here you will be able to view our full assessment of CATERPILLAR INC and get updated on the latest news and developments in financial markets. More…

Peers

Caterpillar Inc. is one of the world’s largest manufacturers of construction and mining equipment, diesel and natural gas engines, and industrial gas turbines. The company operates in more than 500 locations across six continents. Caterpillar’s products are used in a variety of industries, including construction, mining, forestry, and energy. The company competes with a number of other manufacturers, including CNH Industrial NV, Deere & Co, AGCO Corp, and others.

– CNH Industrial NV ($NYSE:CNHI)

CNH Industrial N.V. is a holding company, which engages in the manufacture of agricultural and construction equipment, trucks, commercial vehicles, buses, and specialty vehicles. It operates through the following segments: Agricultural Equipment, Construction Equipment, Commercial Vehicles, Powertrain, and Financial Services. The Agricultural Equipment segment produces and sells agricultural tractors, combines, haytools, sprayers, forage harvesters, implements and related replacement parts. The Construction Equipment segment manufactures and sells backhoe loaders, small and medium tracked excavators, wheeled excavators, skid steer loaders, compact track loaders, wheel loaders, telehandlers, dumpers, motor graders, soil and asphalt compactors, and other equipment. The Commercial Vehicles segment produces and sells light, medium, and heavy-duty trucks under the Iveco brand. The Powertrain segment manufactures and sells engines, transmissions, axles, and components. The Financial Services segment offers wholesale and retail financing products to customers and dealers to purchase equipment. The company was founded on November 12, 2012 and is headquartered in London, the United Kingdom.

– Deere & Co ($NYSE:DE)

As of 2022, Deere & Co has a market cap of 112.07B and a Return on Equity of 25.53%. The company is engaged in the manufacturing and distribution of equipment used in agricultural, construction, forestry, and turf care.

– AGCO Corp ($NYSE:AGCO)

AGCO Corp is a publicly traded company that manufactures and sells agricultural equipment and related products. As of 2022, the company had a market capitalization of 8.31 billion dollars and a return on equity of 16.62%. The company’s products include tractors, combines, hay tools, sprayers, forage equipment, and more. AGCO Corp is headquartered in Duluth, Georgia, and has operations in North America, Europe, South America, and Asia.

Summary

CATERPILLAR INC reported its fourth quarter of FY2022 earnings on January 31 2023, with total revenues of USD 1.4 billion and net income of USD 16.6 billion, a decrease and increase of 31.6% and 20.3% respectively compared to the same quarter of the prior year. Stock price reacted accordingly with a downward movement. From an investment standpoint, CATERPILLAR INC showed a decrease in revenues yet a higher net income, leading to mixed signals for investors.

However, with a strong balance sheet and solid growth prospects, CATERPILLAR INC remains a viable option in the long-term. Investors should closely monitor the company’s performance in the coming quarters for further insight into the company’s future prospects.