For the three months ended Sept. 30, Caterpillar Inc. earned $668 million, or $1.22 per share, down more than 50% from the same period last year. Stripping out one-time costs, earnings were $1.34 per share, easily beating the $1.15 per that Wall Street was looking for.
Yet the company has yet to issue guidance to investors, and shares dropped almost 2% before the opening bell Tuesday.
The construction industry has been constrained by the unchecked spread of COVID-19 in the U.S., which is now setting record highs. With the upward trajectory, especially in the Midwest and Plains, home building and commercial projects planned for the winter are under increasing threat.
Sales of new homes fell by 3.5% in September, the Commerce Department reported this week. While new home sales are up 32.1% after a strong summer when many states managed outbreaks, the latest report could signal trouble in the months ahead.
A portion of this story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on CAT at https://www.zacks.com/ap/CAT