The Rising Influence of Rising Affluence

[DewDiligence]

CAT 3Q22 results

Overall, a very solid quarter with no sign of an impending business downturn. Revenue: $15.0B, +21% YoY; GAAP EPS: $3.87, +48% YoY; non-GAAP EPS*: $3.95, +49% YoY.

CAT does not provide specific guidance for sales or EPS, but it expects 4Q22 to be the strongest quarter of 2022 (consistent with normal seasonal patterns) with YoY sales increases in all three business segments. CAT also expects that 4Q22 and full-year 2022 price increases will more than offset cost inflation of raw-materials inputs.

*Non-GAAP EPS excludes restructuring costs, which were $0.08/sh in 3Q22 and $0.06/sh in 3Q21. Excluding restructuring costs is a policy that I take issue with insofar as a multinational, multifaceted business such as CAT’s has restructuring costs continually. In this particular instance, the adjustments for restructuring costs were small, but this is not the case in all reporting periods.


PR:
https://www.caterpillar.com/content/dam/caterpillarDotCom/releases/3q22/3q22-caterpillar-inc-financial-results.pdf

CC slides:
https://s25.q4cdn.com/358376879/files/doc_financials/2022/q3/3Q-2022-Caterpillar-Inc-Earnings-Presentation.pdf