NEW YORK (TheStreet) -- Shares of Caterpillar (CAT) - Get Report were declining in pre-market trading on Tuesday after reporting a 2016 third-quarter revenue miss and cutting its outlook for the full year.
Before the market open, the construction equipment maker said revenue declined 16% year-over-year to $9.16 billion, missing analysts' estimates of $9.86 billion.
Adjusted earnings of 85 cents per share beat estimates of 76 cents per share.
Caterpillar lowered its outlook for 2016. The company now expects adjusted earnings of $3.25 per share on $39 billion in revenue, down from adjusted earnings of $3.55 per share and between $40.0 billion and $40.5 billion in revenue for the year.
"While we are seeing early signals of improvement in some areas, we continue to face a number of challenges," Doug Oberhelman said in a statement. "We remain cautious as we look ahead to 2017, but are hopeful as the year unfolds we will begin to see more positive momentum."
Oberhelman announced last week that he will step down from the CEO role in January. He will be replaced by Jim Umpleby, group president for energy and transportation.
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B-.
Caterpillar's strengths such as its good cash flow from operations, expanding profit margins and solid stock price performance outweigh the fact that the company has had somewhat weak growth in earnings per share.
You can view the full analysis from the report here: CAT
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.