PEORIA, Illinois-- Caterpillar stock was back up a $1.13 Monday, April 29 before 9 a.m., after a sell-off Wednesday, April 24. The sell off was due to its first quarter earnings report.
Quad Cities Investment Group Advisor Mark Grywacheski discussed the topic during Your Money Monday morning on Good Morning Quad Cities. Its first quarter earnings report was actually better than expected. Its sales and revenue came in at $13.5 billion. They were expected to be $13.4. Its profit per share was $3.25. It was only expected to be $3.15.
Why did its stock drop after Wednesday's report then?
The company continues to struggle with its construction industry operation though, specifically from its markets in the Asia Pacific region.
"Caterpillar derives about 25% of its total sales and revenues from the Asia Pacific region, including China, which continues to have a very weak national economy." he said Monday.
Grywacheski added the company's projecting just a modest increase in sales for this year.