By Nandan Mandayam
Aug 4 (Reuters) - Caterpillar raised its annual revenue growth forecast after beating second-quarter profit estimates on Tuesday, benefiting from a buildout of AI data centers that has spurred demand for its power-generation and construction equipment.
Shares of the company jumped 11% in premarket trading, sending Dow futures up 0.6%, after it cut its full-year tariff costs forecast to around $2.2 billion from the previously expected $2.2 billion to $2.6 billion.
Over the last few quarters, the equipment giant has seen a surge in orders for construction equipment amid a nationwide buildout of data centers as well as the backup power equipment needed for such buildings.
"Construction leading growth in the quarter was a standout," Oppenheimer ***** yst Kristen Owen said. The stock's reaction "reflects the importance of the durability of core Caterpillar businesses in sustaining the stock's momentum."
#Growth #forecast
Aug 4 (Reuters) - Caterpillar raised its annual revenue growth forecast after beating second-quarter profit estimates on Tuesday, benefiting from a buildout of AI data centers that has spurred demand for its power-generation and construction equipment.
Shares of the company jumped 11% in premarket trading, sending Dow futures up 0.6%, after it cut its full-year tariff costs forecast to around $2.2 billion from the previously expected $2.2 billion to $2.6 billion.
Over the last few quarters, the equipment giant has seen a surge in orders for construction equipment amid a nationwide buildout of data centers as well as the backup power equipment needed for such buildings.
"Construction leading growth in the quarter was a standout," Oppenheimer ***** yst Kristen Owen said. The stock's reaction "reflects the importance of the durability of core Caterpillar businesses in sustaining the stock's momentum."
#Growth #forecast
3 months ago
