Thomson Reuters
Mining equipment is displayed at the Caterpillar booth during the MINExpo International 2012 trade show at the Las Vegas Convention Center in Las Vegas
Caterpillar announced much higher than expected earnings for the first quarter of 2017 on Tuesday, and its stock is popping.The global industrial equipment manufacturer announced adjusted earnings of $1.28 per share, crushes analysts expectations of $0.62 per share. Additionally, the company beat on revenues, generating $9.8 billion against expectations of $9.4 billion.
According to a press release accompanying earnings, the company posted the strong results due to cost cutting measures.
"We're also benefiting from our significant cost reduction and restructuring actions, which have improved cash flow and further strengthened an already healthy balance sheet," said Caterpillar CEO Jim Umpleby.
Following the announcement, Caterpillar's stock jumped in pre-market trading by $5,09 a share, or 5.26%, as of 7:41 a.m ET.
Get the latest Caterpillar stock price here.