Caterpillar, known as the &#34;barometer of the global economy,&#34; exceeded Wall Street's expectations in the fourth quarter of last year, driving the company's stock price to a historic high.
According to the financial report, Caterpillar's fourth-quarter sales increased by 3% YoY to $17.07 billion, in line with analysts' expectations from FactSet. The adjusted earnings per share were $5.23, surpassing analysts' expectations by $0.47. Both of these indicators reached record highs.
In addition, Caterpillar's adjusted operating profit margin for the fourth quarter was 18.9%, higher than the 17.0% in the fourth quarter of 2022.
Although the overall equipment sales volume in the fourth quarter slightly declined, the increase in prices boosted the profit margin, offsetting the loss caused by the decline in sales volume.
The performance in the North American market was particularly strong. Caterpillar's equipment sales in North America increased by 4% in the fourth quarter, driven by government-funded infrastructure projects. The company also stated that the increase in spending on computer data centers drove demand for its power engines.
Boosted by the financial report, Caterpillar's stock price rose 2% overnight to $321.40, reaching a new all-time high.
&#34;I am extremely proud of the strong performance of our global team. They have created the best year in the company's 98-year history, including record annual sales and revenue, record adjusted earnings per share, and record industrial free cash flow,&#34; said Jim Umpleby, CEO of Caterpillar.
He told analysts that supply chain constraints have eased in recent years but warned that &#34;our manufacturing operations have not been as efficient as I expected.&#34;
Looking ahead, Caterpillar stated in the financial report that it expects &#34;sales and revenue for the full year 2024 to be roughly in line with 2023,&#34; with sales projected to be $67 billion and a profit margin exceeding 19%, with operating profit expected to be around $13 billion.

Caterpillar, the 'global economic barometer,' reported a 3% YoY increase in sales for the fourth quarter, reaching $17.07 billion. The adjusted earnings per share also reached a record high of $5.23.

Strong North American infrastructure, record-breaking annual revenue, "Excavator King" Caterpillar's stock price hits a new high