bulldozed past second-quarter earnings estimates Thursday, capitalizing on demand for heavy equipment among companies involved in resource extraction.
Caterpillar -- whose stock took off earlier this week after
columnist Jim Cramer predicted a "monster quarter" for the tractor maker -- reported net income of $760 million, or $1.08 a share, compared with $566 million, or 80 cents a share, last year. Revenue rose 23% to $9.36 billion.
Analysts were forecasting earnings of $1.01 a share on sales of $8.4 billion, according to Thomson First Call. Caterpillar also raised full-year guidance to earnings of $4 to $4.20 a share on sales of $33.4 billion to $34 billion. The Thomson First Call consensus estimates were $3.96 a share on $33.6 billion.
"The strength of our markets is clearly not a blip on the radar," the company said. "Key indicators such as low interest rates, robust commodity prices and needed investment for capacity in electric power and energy production point to continued growth.
"While this growth is expected to continue in the near term, we're laying a solid foundation for our future by staying focused on prudently managing our cost structure and margins while continuing to invest in new products and production capacity to meet strong customer demand," Caterpillar said.
In the second quarter machinery sales rose 25% from a year ago, while engine sales jumped 22% and financial-product sales rose 19%, the company said.