Shares of Caterpillar (NYSE:CAT) climbed more than 5% in premarket trading on Thursday after the company reported first-quarter earnings and revenue that exceeded Wall Street forecasts.
The machinery giant posted earnings per share of $5.54 for the quarter, well above the consensus estimate of $4.63. Revenue increased 10% year-over-year to $17.4 billion, also surpassing the $16.49 billion expected by analysts.
Profit before income taxes rose 12% from a year earlier to $195 million. Caterpillar said the improvement was mainly driven by a positive contribution of $40 million from higher average earning assets, partially offset by a $22 million increase in general, operating and administrative expenses.
Retail new business volume totaled $3.19 billion in the first quarter, up $226 million, or 8%, from $2.96 billion in the same period last year. The company attributed the growth primarily to stronger demand across Mining, North America, Asia Pacific and Power segments.