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Caterpillar (NYSE:CAT) fell 4.64% in pre-market trading to $375.00 as of 08:55:40 AM ET after reporting lower-than-expected Q4 revenue, marking its fifth consecutive quarterly miss.
Despite beating adjusted earnings estimates, weak sales across its core business segments raised concerns about high dealer inventories. Net income rose to $2.79 billion ($5.78 per share) from $2.68 billion ($5.28 per share) a year earlier, but revenue declined 5% year-over-year to $16.2 billion, falling short of Wall Street expectations.
Lower sales volumes hurt operating profit, though currency shifts provided a slight income boost. Sales of construction equipment dropped 8% to $6 billion, mining equipment fell 9% to $2.96 billion, and engine and transportation revenue held steady at $7.65 billion. Dealer inventories declined by $1.3 billion, a sharper drop than the $900 million decrease last year.
Looking ahead, Caterpillar expects "slightly lower" revenue in 2025, citing weaker demand, and does not anticipate major inventory shifts. Analysts believe this cautious outlook could pressure earnings estimates moving forward.
This article first appeared on GuruFocus.