About Caterpillar’s “Tremendous Earnings Growth”, There Is Just One Thing…

One can claim, as CNBC has done today, that CAT had “tremendous earnings growth”. There is just one problem: this is also a tremendous lie.


About Caterpillar’s “Tremendous Earnings Growth”, There Is Just One Thing…:

With CAT and MCD accounting for over 100 of the 250+ Dow points today, one would think that, as CNBC has repeatedly stated today, these two companies are posting “tremendous earnings growth.”

And, in a way they are… a non-GAAP way. Because while CAT reported adjusted EPS of $1.28, up exactly 100% from a year ago  – almost as if it was goalseeked – something far less appetizing emerges when looking at CAT’s actual, GAAP EPS, which happen to be exactly one quarter of the non-GAAP number, or $0.32, a 30% drop from a year ago.

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