Shares of Caterpillar, the construction and mining equipment maker, saw gains as high as 5.4% on Tuesday after reporting stellar second quarter results and raising its full-year forecast for the second time.
The stock hit highs it hasn’t seen in five years after reporting sales of $11.33 billion, way ahead of the $10.93 billion that analysts had been waiting for according to Thomson Reuters. Net income was $802 million, and $1.49 per share excluding items. This was not only a 46% increase from the year ago quarter, but also beat estimate of $1.26 per share.
China was a big help in boosting sales and the Asia Pacific market offered a 23% increase in sales for the quarter. Sales in North America, which is the company’s biggest market, were up 7% for the period.
CEO Jim Umpleby remarked, “construction in China and gas compression in North America were highlights in the quarter.”
Looking ahead, the company has forecast adjusted earnings for 2017 of around $5 a share. Previously the company forecast $3.75 a share. Revenue for the full year is expected to be in a range of $42 billion to $44 billion. Previously Caterpillar had forecast $38 billion to $41 billion.
Disclaimer: We have no position in Caterpillar Inc. (NYSE: CAT) and have not been compensated for this article.