Caterpillar Inc. reported Friday big profit and revenue beats, as sales of all three of its major business segments rose above expectations, but the stock dropped 1.7% premarket as cost increases outpaced sales growth. Net income nearly tripled, to $2.12 billion, or $3.91 a share, from $780 million, or $1.42 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share rose to $2.69 from $2.12, well above the FactSet consensus of $2.26. Revenue grew 22.8% to $13.80 billion, beating the FactSet consensus of $13.17 billion. Meanwhile cost of sales outpaced sales growth, rising 28.5% to $10.00 billion to top expectations of $9.21 billion. For sales of the company’s business segments, Construction Industries rose 27% to $5.74 billion, Energy & Transportation increased 19% to $5.73 billion and Resource Industries grew 27% to $2.76 billion. “Amid ongoing supply chain constraints, our team continues to execute our strategy for long-term profitable growth while striving to meet customer demand,” said Chief Executive Jim Umpleby. The stock has gained 4.0% over the past three months while the Dow Jones Industrial Average has lost 4.4%.
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