At a time when growing concerns over tariffs and shaky investments, Caterpillar posted strong gains in the third quarter of 2018. But market analysts are seeking clearer answers on how the company may absorb a rise in material costs.
The Peoria, Ill.-based equipment manufacturer on Oct. 23 posted sales and revenue of $13.5 billion, up 18% over the third quarter of last year. But historically strong results were not enough to stave off concerns about rising material costs and market uncertainty, which drove a selloff of Cat stock in the following days. Shares (NYSE: CAT) were trading at $114.72 at midday Oct. 30, well below the 52-week high of $173.24 recorded on Jan. 16.