Caterpillar +5% after beating Q2 estimates, raising full-year revenue view
Caterpillar (NYSE: CAT) +5.1% premarket, on track to open at a five-year high, after easily beating Q2 earnings expectations, helped by strength in its construction and resources businesses, and raising its profit outlook for the year.CAT says it is raising its FY 2017 guidance because of increased demand across many end markets and disciplined cost control; it now sees FY 2017 EPS of $5.00 vs. $4.32 analyst consensus estimate on revenues of $42B-$44B vs. $40.7B consensus and up from April sales guidance of $38B-$41B.Q2 revenues rose 9.6% Y/Y to $11.33B, primarily due to higher sales volume, with the largest increase in its construction unit mostly due to higher end-user demand for construction equipment.CAT's financial position continued to strengthen, with operating cash flow in its Machinery, Energy & Transportation unit totaling $2B and debt-to-capital ratio improving to 38.6%, vs. 41.7% at the end of Q1.