NEW YORK, NY / ACCESSWIRE / April 25, 2018 / Caterpillar was one of the biggest losers in the market on Tuesday after Wall Street became worried about President Trump's steel tariffs increasing costs for the company. Shares slipped into the red despite the company reporting impressive first quarter results. Shares of SemiLEDS saw big gains despite any catalyst. The LED chip and component manufacturer announced dismal second quarter results earlier in the month.
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Caterpillar Inc. shares closed down 6.20% yesterday on a little over 24 million shares traded. Trading volume on Tuesday was significant in comparison to the stock's average volume of about 6.1 million shares. It was a roller coaster day for the stock after the construction equipment manufacturer reported better than expected first quarter results. Company reported EPS of $2.82 on revenue of $12.9 billion. Analyst were expecting earnings of $2.13 a share and revenue of $12.1 billion. While shares opened higher and saw gains in early trading, those gains were then wiped out after the company's CFO Bradley M. Halverson said the company's first quarter profits were "the high watermark for the year." Halverson remarked on the company's price versus material costs equation for the later parts of the year. According to Lawrence T. De Maria who is the co-group head of Global Industrial Infrastructure at William Blair & Company, "It's a negative surprise because the indications had previously been that everything was okay on that front." Caterpillar even raised its outlook for 2018 but it still wasn't enough to ease concerns of traders. The company is expecting adjusted per share earnings of $10.25 to $11.25 for 2018. Previously the company said it was expecting $8.25 to $9.25. Analysts on average have been expecting $9.27.
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SemiLEDs Corporation shares closed up about 27% yesterday on nearly 5.6 million shares traded. There was no significant news from the company to explain the big jump. It was almost two weeks ago that the developer and manufacturer of LED chips and LED components announced second quarter financial results. Revenue for the period was $1.5 million, representing a 23% decrease compared to the first quarter. The company also reported a net loss of $0.32 per diluted share, compared to a net loss of $0.11 per diluted share for the first quarter. The company also stated, "During the second quarter ended February 28, 2018, we moved and consolidated our LED packaging facility in HsinAn to our headquarters in Chunan, Taiwan as part of our cost reduction efforts."
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