NEW YORK (TheStreet) -- Caterpillar  (CAT - Get Report) , the largest maker of construction and mining machinery, has issued a weaker-than-expected 2016 first quarter earnings and revenue outlook while nonetheless maintaining its full-year guidance. 

The two most surprising aspects of Caterpillar's release were how deep the company's first-quarter cut was and how quickly it believes the industry will rally, TheStreet's Jim Cramer said on CNBC's Squawk on the Street this morning.

"It kind of took my breath away," Cramer mentioned of the company's first-quarter forecast. "You were looking for something a little more subtle than that." 

While Cramer said he appreciates that Caterpillar tells investors exactly where the weakness in its business is, he did not appreciate that that weakness was in every one of its divisions. 

Even so, shares are increasing 1.20% to $75.25 in early-afternoon trading as investors remain optimistic about the company's full-year prospects, he explained.

"People are willing to forgive Caterpillar's first quarter," he points out in the above video. "Why? Because Caterpillar stuck by its entire 2016 numbers. People are seeing that they think the numbers will pick up. I'm not against it."

There's hope that China will "do something great," iron ore recently surged, copper has been "on fire" and oil is "up dramatically," Cramer added on the show, noting that people believe this is the trough. 

Although these recent rallies aren't going to help the current quarter, "wait until you see the second half [of the year]," he urged viewers.

Freeport-McMoRan (FCX) has operations in oil, gold and copper, which is the "holy trinity of what's going higher," Cramer pointed out while noting that the company is a client of Caterpillar's.

"If Freeport goes up, I bet Caterpillar gets orders," he stated. "That's why people aren't going to give up so easily."

Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C.

Caterpillar's strengths such as expanding profit margins are countered by weaknesses including deteriorating net income, generally higher debt management risk and a generally disappointing performance in the stock itself.

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.