Caterpillar Inc. posted its third-quarter adjusted earnings per share, which rose +48.5% from the year-ago quarter to $3.95, and was well above the Zacks Consensus Estimate of $3.19 (as reported in Zacks Equity Research). Amidst higher material and freight costs, strong demand and favorable price realization boosted earnings in the quarter.
The construction equipment maker’s revenues jumped +21% year-over-year to $15 billion in the third quarter, exceeding the Zacks Consensus Estimate of $14.3 billion (as reported in Zacks Equity Research).
While the cost of sales rose +18% year over year to around $10 billion, gross profit climbed +27% year over year to $4.8 billion - thanks to higher sales volumes. Gross margin ticked up to 32% in the quarter (from 30.5% in the prior-year quarter).