Caterpillar’s stock has risen sharply, thanks largely to the strong demand the company has experienced in the first quarter of this year. Caterpillar Inc (NYSE-CAT)’s total sales for the first quarter of 2024 were $15.8 billion, up from the same quarter a year earlier. Operating profit margin for the first quarter of 2024 was 22.3% , a 5.1% year-over-year increase. Operating profit margin was up 1.1% year-over-year to 22.2% for the first quarter of 2024. Adjusted earnings per share for the first quarter of 2024 were $5.60.
For the three months ended March 31, 2024, the company’s cash flow was $2.1 billion. Caterpillar Inc (NYSE-CAT) closed the first quarter with $5.0 billion in equity. In the first quarter, the company set aside $4.5 billion for common stock repurchases and $0.6 billion for dividends. Chairman and CEO Jim Umpleby said : «I am pleased with our team’s performance, which resulted in higher adjusted operating profit margins, record adjusted earnings per share and strong free cash flow for ME&T. Our strong balance sheet and ME&T’s free cash flow allowed us to use a record $5.1 billion in cash for share repurchases and dividends in the first quarter.» «We continue to execute on our strategy for long-term profitable growth.»
Total Caterpillar Inc (NYSE-CAT) sales for the full year 2023 were $67.1 billion, up 13% year-over-year. The sales increase also reflected price increases and higher sales volume to end customers. Full-year comparable sales rose above global analysts’ estimates, mainly due to an increase in commodity prices, but also due to an increase in business supply, which has returned to the pre-Covid era. Shares of Caterpillar Inc. The company also said its sales reached the highest level in its 98-year career. Caterpillar expects demand to increase in the coming quarters for infrastructure construction and expansion through government investment.
Caterpillar Inc (NYSE-CAT) also pays a quarterly dividend to its shareholders, the current amount of which corresponds to a dividend yield of 1.54% per annum, and the actual dividend amount has been approved by the company’s general meeting of shareholders at $1.30 per share. According to analysts at brokerage firms and financial strategists at investment banks, the share price can be expected to rise in the short to medium term investment horizon, where the average target price has been set at USD 362.57 per share.
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