Caterpillar reported better than expected earnings and revenue on Wednesday.
plunged after Caterpillar reported disappointing fourth-quarter earnings. The equipment manufacturer, considered a proxy for the global economy, said tariffs and a slowdown in sales in China impacted profit.
For the full year, however, the company posted record profit of $11.22 a share, up 63 percent from a year earlier. Full-year sales also rose by 20 percent.
In February, UBS gave Caterpillar a rare double downgrade from “buy” to “sell,” as analysts warned that an earnings decline in 2020 had not yet been priced into the stock.
The stock has since rebounded, however, and is up 12% so far in 2019. Over the past 12 months, it is down 7%.