NEW YORK (TheStreet) -- Caterpillar (CAT)  shares are slumping 1.47% to $73.25 in Thursday's pre-market trading session after the construction and mining equipment maker offered a lower-than-expected fiscal 2016 first quarter earnings and revenue outlook. 

It expects adjusted earnings to be between 65 cents a share to 70 cents a share, lower than Wall Street's forecasts of 97 cents a share.

The Peoria, IL-based company estimates sales to be between $9.3 billion to $9.4 billion compared to analysts' expectations of $10.34 billion. 

This comes as the company has been challenged by plunging commodity prices.

Last year, the company said it would slash jobs and cut spending to battle slowing demand due to China's economic health. 

However, the company backed its full year guidance for 2016. It projects profit to be between $3.50 a share to $4 a share and sales to be $40 billion to $44 billion.

Separately, TheStreet Ratings currently has a "Hold" rating on the stock with a letter grade of C.

The company's strongest point has been its expanding profit margins. At the same time, however, we also find weaknesses including deteriorating net income, generally higher debt management risk and a generally disappointing performance in the stock itself.

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' author.

You can view the full analysis from the report here: CAT

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