Home Stocks Caterpillar Inc. Earnings Beat Estimates; UPS Disappoints

Caterpillar Inc. Earnings Beat Estimates; UPS Disappoints

When you purchase through our sponsored links, we may earn a commission. By using this website you agree to our T&Cs.

Caterpillar Inc. (NYSE:CAT), the largest manufacturer of construction and mining equipment, reported earnings that exceeded the expectations of Wall Street analysts for the first quarter of 2014.

On the other hand, United Parcel Service, Inc. (NYSE: UPS), the largest package delivery company and one of the leading providers of specialized transportation and logistics services reported disappointing financial results for the three-month period that ended March 31.

Caterpillar earnings results

During the first quarter, Caterpillar Inc. (NYSE:CAT) reported $1.44 earnings per share, up from $1.31 earnings per share in the same period a year ago. Excluding restructuring costs, the company earned $1.61 per share. Its revenue was $13.24 billion, slightly higher than its $13.21 billion revenue last year.

Wall Street analysts forecasted that the construction and mining equipment manufacturer will deliver $1.23 earnings per share on $13.1 billion revenue.

Doug Oberhelman, chairman and CEO of Caterpillar Inc. (NYSE:CAT) said, “This was a quarter that clearly highlighted the diversity of Caterpillar’s business across industries and regions of the world, and how that diversity continues to help us through the downturn in mining. Both Energy & Transportation and Construction Industries had good results in the first quarter and performed at levels better than we anticipated.”

According to him, the company benefited from reducing its costs, improving cash flow, and driving value for customers through the continued deployment of lean manufacturing initiatives.

2014 Outlook

Caterpillar Inc. (NYSE:CAT) raised its earnings outlook to $5.55 per share. Excluding restructuring costs of $0.55 a share, the company expected to achieve $6.10 per share for 2014. Its revenue forecast remained at $56 billion.

UPS earnings results

United Parcel Service, Inc. (NYSE:UPS) reported $911 million earnings or $0.98 per share on $13.78 billion revenue for the first quarter. The financial performance of the company missed the $1.08 earnings per share in $13.91 billion revenue estimated by Wall Street analysts.

The largest package delivery company blamed the severe weather conditions for its disappointing results, and estimated that its negative impact on its operating profit was approximately $200 million, due to increased expenses and slower revenue growth.

Scott Davis, chairman and CEO of United Parcel Service, Inc. (NYSE:UPS) said, “Much of the U.S. economy was negatively affected by the severe weather conditions in the first quarter, resulting in lower UPS operating results versus the prior year.”

2014 Outlook

The company said its earnings will be at the low-end of its full-year guidance range of $5.05 to $5.30 per share because of the challenging start of 2014. “We are encouraged by the positive trends in our business and expect the remainder of the year to perform as we originally guided,” said United Parcel Service, Inc. (NYSE:UPS) CFO Kurt Kuehn.

Our Editorial Standards

At ValueWalk, we’re committed to providing accurate, research-backed information. Our editors go above and beyond to ensure our content is trustworthy and transparent.

Marie Cabural

Want Financial Guidance Sent Straight to You?

  • Pop your email in the box, and you'll receive bi-weekly emails from ValueWalk.
  • We never send spam — only the latest financial news and guides to help you take charge of your financial future.