Shares of Caterpillar Inc. CAT,
skyrocketed 2.4% in premarket trading Friday after the maker of construction and mining equipment and engines and turbines reported earnings and revenues in the second quarter that declined as a result of the impact of the COVID-19 pandemic, but expectations from Wall Street. Net income decreased to $ 458 million, or 84 cents per share, from $ 1.62 billion or $ 2.83 per share in the prior year period, including $ 122 million in losses from settlement of retirement benefits. FactSet’s consensus for earnings per share was 64 cents. Total revenue decreased 31% to $ 10.00 billion, but was above the FactSet consensus of $ 9.40 billion, as revenues from Caterpillar’s construction, raw materials, energy and transportation companies all fell less than expected. Dealers cut machine and motorcycle inventories by about $ 1.4 billion, up from about $ 500 million a year ago. The company expects the COVID-19 pandemic to impact results for the remainder of 2021, but will not provide a financial outlook given the uncertainties of that impact. The stock has lost 7.4% through Thursday, while the Dow Jones Industrial Average DJIA,
decreased by 7.8%.