Shares of Caterpillar (CAT) were sliding 2% pre-market Tuesday after the company reported mixed Q3 results and lowered its guidance on FY16 adjusted EPS and revenues below analysts’ forecasts.
Q3 adjusted EPS was $0.85 per share, down from $1.05 per share a year earlier but higher than the $0.76 per share consensus compiled by Capital IQ.
Revenues fell to $9.16 billion from $10.96 billion and missed the $9.88 billion mean estimate.
For FY16, the construction equipment maker now expects adjusted EPS of $3.25 and revenues of $39 billion, down from a prior outlook for adjusted EPS of $3.55 per share on revenues of $40.0 billion to $40.5 billion. Analysts are expecting adjusted EPS of $3.53 and revenues of $40.12 billion.
For FY17, the company said it preliminarily expects revenues not to be significantly different from 2016.
Caterpillar Chairman and CEO Doug Oberhelman said that economic weakness persists throughout much of the world and that the company’s end markets remain challenged as a result. On a more positive note, Oberhelman also said that “both the construction industry and our machine market position improved in China,” with most commodity prices appearing to stabilize.