Caterpillar Inc. (CAT - Get Report) fell on Tuesday, Oct. 23, after suggesting that increased demand had created some supply chain challenges even though it beat third-quarter earnings and revenue estimates.
The Deerfield, Ill.-based construction and mining equipment manufacturer posted adjusted earnings of $2.86 a share on revenue of $13.5 billion. Analysts had been expecting earnings of $2.85 on revenue of $13.26 billion, according to FactSet.
The company reiterated its full-year adjusted profit per share outlook range of $11 and $12 a share, which compared with analysts' expectations of $11.64 a share.
"Most end markets continue to improve," Caterpillar said in a statement. "Order rates and backlog remain healthy. In the fourth quarter, price realization, operational excellence and cost discipline are expected to more than offset higher material and freight costs, including tariffs."
That said, the company noted the "sharp increase in demand has led to supply chain challenges across the industry," and although Caterpillar has made efforts to improve material flows, "constraints remain for some parts and components that are impacting lead times and availability."
Shares of Caterpillar fell 7.5% to $119.00 on Tuesday.