Before the market open on Thursday, the manufacturer of construction equipment reported earnings of 74 cents per share, topping analysts' forecasts for earnings of 69 cents per share.
However, revenue declined by about 22.5% to $11.03 billion, lower than analysts' expectations for revenue of $11.42 billion.
Caterpillar projected 2016 earnings of $4 per share on revenue, higher than analysts' forecasts for full-year earnings of $3.47 per share.
Additionally, the company lowered its 2016 revenue guidance by about $3.5 billion to a range between $40 billion and $44 billion. Caterpillar lowered its guidance due to slipping commodity prices and economic weakness in developing countries, the company said in a statement.
Separately, recently, 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 articles's author.
TheStreet Ratings rates this stock as a "hold" with a ratings score of C. Among the primary strengths of the company is its reasonable valuation levels, considering its current price compared to earnings, book value and other measures. At the same time, however, we also find weaknesses including deteriorating net income, generally higher debt management risk and poor profit margins.
You can view the full analysis from the report here: CAT