Caterpillar (NYSE:CAT) shares dropped more than 4% Thursday despite beating analyst consensus expectations.
The construction equipment manufacturer reported Q1 EPS of $4.91, $1.11 better than the analyst estimate of $3.80, while revenue for the quarter grew by $116 million or 18%, coming in at $15.9 billion versus the consensus estimate of $15.1 billion.
However, there are some demand concerns, with Reuters stating that analysts are worried about the company's order backlog.
Caterpillar reported that its Construction Industries segment total sales were $6.746 billion, rising 10%, compared with $6.115 billion in the first quarter of 2022. However, the increase was partially offset by lower sales volume, the company explained, adding that a decrease in sales volume was driven by the impact of changes in dealer inventories. This has fueled some investor concerns.
"We achieved double-digit top-line growth and record adjusted profit per share while generating strong ME&T free cash flow," said Jim Umpleby, Caterpillar Chairman and CEO. "Our team remains focused on supporting our customers as we execute our strategy for long-term profitable growth."