Caterpillar +7.5% after strong quarter; Deere surges to all-time highs

|About: Caterpillar Inc. (CAT)|By:, SA News Editor

Caterpillar (CAT +7.5%) rallies to its highest levels in more than two years after Q1 earnings and revenues blew past estimates and upwardly revising its full-year forecast.

“We’re starting to feel better about things than maybe even about four months ago,” CFO Brad Halverson says, adding that China’s “tremendous” surge in demand in the quarter was “more than we expected.”

“Clearly, encouraging signs are emerging that CAT’s end markets are finally turning around following a very challenging four-year period,” Edward Jones analyst Matt Arnold says.

The improved outlook comes as CAT yesterday reported a measure of worldwide retail sales of its machines had increased for the first time since November 2012.

TD Securities analyst do not necessarily see CAT’s strong quarter translating over to other machinery companies, but Deere (DE +2.7%) is breaking out to all-time highs, and Cummins (CMI +2.2%), Komatsu (OTCPK:KMTUY +4.8%) and Ritchie Bros. Auctioneers (RBA +1.6%) also enjoy strong gains.