U.S. Markets close in 48 mins

Two iconic American brands just crushed expectations

Myles Udland
Markets Reporter

McDonald’s (MCD) and Caterpillar (CAT), two iconic American brands, crushed earnings expectations in the first quarter of 2017.

In early trading on Tuesday, shares of McDonald’s were up as much as 2.5% while Caterpillar shares were higher by as much as 6.5%.

Caterpillar, which is often cited as a bellwether of global manufacturing activity, reported first quarter adjusted earnings of $1.28 on revenue of $9.8 billion, topping expectations for earnings of $0.62 per share on revenue of $9.27 billion.

The company also raised its revenue guidance for 2017 and said it “is seeing signs of recovery in several of the industries it serves,” though Caterpillar noted that, “geopolitical and market uncertainty along with volatility in commodity prices continue to present risks for the rest of the year.”

Caterpillar now expected 2017 sales to be between $38-$41 billion better than its prior view for sales of $36-$39 billion.

“Our team delivered outstanding operational performance and, for the first time in more than two years, same quarter sales and revenues increased,” Caterpillar CEO Jim Umpleby said in a statement.

Caterpillar’s sales finally turned positive in March after almost five years of declines. (Source: Bespoke Investment Group)

This report comes a day after Caterpillar’s 3-month rolling sales as of March turned positive for the first time since November 2012, bolstered by a 46% increase in Asia. In a note on Monday, analysts at Bespoke Investment Group said Caterpillar’s sales illustrate that “global growth trends that are improving at a better rate than the US.”

Retaining, regaining, and converting customers

McDonald’s, which has seen seen sales bounce over the last year or so, reported first quarter comparable U.S. sales that jumped 1.7%, topping expectations for a decline of 0.8%. Global comparable sales — which track sales at locations open 13 months or more — rose 4% during the first quarter, better than the 1.3% increase that was expected.

The fast-food chain also reported earnings per share of $1.47 on revenue of $5.68 billion, beating Wall Street expectations for earnings of $1.34 on revenue of $5.53 billion.

In a statement, CEO Steve Easterbrook said, “There’s a sense of urgency across the business as we take actions to retain existing customers, regain lapsed customers and convert casual customers to committed customers.”

As CNBC’s Dominic Chu noted on Twitter, Caterpillar’s current jump looks set to add about 40 points to the Dow, while McDonald’s pre-market gain should add almost 25 points to the index.

After a huge rally on Monday after the results of the first round of France’s presidential election, U.S. stocks were rallying again on Monday with the Dow up more than 150 points and tech-heavy Nasdaq trading above 6,000 for the first time.

Myles Udland is a writer at Yahoo Finance. Follow him on Twitter @MylesUdland

Read more from Myles here:

  • Why Cheniere Energy Partners Rallied Nearly 11% in November
    Business
    Motley Fool

    Why Cheniere Energy Partners Rallied Nearly 11% in November

    Cheniere Energy Partners (NYSEMKT: CQP) rallied 10.9% in November, according to data provided by S&P Global Market Intelligence. Fueling the liquefied natural gas (LNG) company was its strong third-quarter report and a bullish outlook for 2018 and 2019. Cheniere Energy Partners produced $604 million of adjusted EBITDA in the third quarter, more than double what it hauled in during the year-ago period.

  • See what the IHS Markit Score report has to say about Knowles Corp.
    Business
    Markit

    See what the IHS Markit Score report has to say about Knowles Corp.

    To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.

  • Finance
    Thomson Reuters StreetEvents

    Edited Transcript of CELH earnings conference call or presentation 8-Nov-18 9:30pm GMT

    Q3 2018 Celsius Holdings Inc Earnings Call DELRAY BEACH Dec 10, 2018 (Thomson StreetEvents) -- Edited Transcript of Celsius Holdings Inc earnings conference call or presentation Thursday, November 8, 2018 at 9:30:00pm GMT TEXT version of Transcript

  • Here is What Hedge Funds Think About Cabot Oil & Gas Corporation (COG)
    Finance
    Insider Monkey

    Here is What Hedge Funds Think About Cabot Oil & Gas Corporation (COG)

    Many investors, including Paul Tudor Jones or Stan Druckenmiller, have been saying for a while now that the current market is overvalued due to a low interest rate environment that leads to companies swapping their equity for debt and focusing mostly

  • Business
    Barrons.com

    General Electric Board Changes Are a Sign of Progress

    (GE) (ticker: GE) has added Paula Rosput Reynolds to its board of directors. Reynolds replaces John Brennan who had announced plans to retire in March. During the financial crisis, Reynolds was also appointed as AIG’s vice chairman and chief restructuring officer.

  • Are Investors Undervaluing Armour Residential REIT (ARR) Right Now?
    Finance
    Zacks

    Are Investors Undervaluing Armour Residential REIT (ARR) Right Now?

    The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

  • Gilead Needs More Than a Steady Hand From Its New CEO
    Business
    Bloomberg

    Gilead Needs More Than a Steady Hand From Its New CEO

    (Bloomberg Opinion) -- Gilead Sciences Inc. has been in leadership limbo for five uncomfortable months; replacing a CEO and chairman combination that turned the company into a giant isn’t easy. So the hiring on Monday of Roche Holding AG pharma head Daniel

  • Carlos Ghosn wanted to retrieve cash, artwork from Rio apartment
    Finance
    Autoblog

    Carlos Ghosn wanted to retrieve cash, artwork from Rio apartment

    SAO PAULO/TOKYO — Ousted Nissan Chairman Carlos Ghosn sought to retrieve "personal belongings, documents, cash, objects and art pieces" from a Rio de Janeiro apartment that the carmaker says could contain evidence of financial misconduct, according to a Brazil court filing by Nissan last week. The previously unreported court papers show the extent of the legal dispute between Ghosn and Nissan over access to the apartment, one of several the former executive had access to around the world. Ghosn is accused of underreporting his income by tens of millions of dollars.

  • ‘Investor sentiment’ driving the markets
    Business
    Yahoo Finance Video

    ‘Investor sentiment’ driving the markets

    Emotion, not fundamentals, are driving the markets and that makes it tough to predict where stocks will go next. Yahoo Finance’s Alexis Christoforous speaks with Ryan Nauman of Informa Financial Intelligence.

  • Hedge Funds Are Crazy About ICU Medical, Inc. (ICUI)
    Finance
    Insider Monkey

    Hedge Funds Are Crazy About ICU Medical, Inc. (ICUI)

    There are several ways to beat the market, and investing in small cap stocks has historically been one of them. We like to improve the odds of beating the market further by examining what famous hedge fund operators such as Carl Icahn and George Soros

  • Hedge Funds Are Crazy About The Allstate Corporation (ALL)
    Finance
    Insider Monkey

    Hedge Funds Are Crazy About The Allstate Corporation (ALL)

    Is The Allstate Corporation (NYSE:ALL) a good equity to bet on right now? Although there have been several high profile failed hedge fund picks, the consensus picks among hedge fund investors have historically outperformed the market after adjusting for known risk attributes. It's not surprising given that hedge funds have access to better information and more resources to find the latest market-moving information.

  • See what the IHS Markit Score report has to say about Pitney Bowes Inc.
    Business
    Markit

    See what the IHS Markit Score report has to say about Pitney Bowes Inc.

    Pitney Bowes Inc NYSE:PBI Score: Neutral (55) 6 days at current score. Downgraded from Positive on December 5th 2018 View full report here! Summary This company ranked neutral compared to the Technology sector with only 2 positive IHS Markit

  • Stocks claw their way back from steep drops led by tech
    XLP
    Yahoo Finance Video

    Stocks claw their way back from steep drops led by tech

    Stocks fell dramatically Monday morning only to claw their way back. Yahoo Finance's Adam Shapiro, Seana Smith and Andy Serwer talk to Jimmy Lee, CEO of Wealth Consulting Group.

  • Say What? A Marijuana Stock Buying Back Its Shares
    Business
    Motley Fool

    Say What? A Marijuana Stock Buying Back Its Shares

    At seemingly every turn this year, the marijuana industry has made history. In Canada, nine decades of recreational marijuana prohibition was tossed aside in favor of legalization via the Cannabis Act. In the United States, two more states approved medical cannabis (Utah and Missouri), bringing the total number of states with legalized medical weed to 32.

  • Is Nabors Industries Ltd. (NBR) A Good Stock To Buy?
    Finance
    Insider Monkey

    Is Nabors Industries Ltd. (NBR) A Good Stock To Buy?

    Amid an overall market correction, many stocks that smart money investors were collectively bullish on tanked during the fourth quarter. The number of bullish hedge fund positions moved up by 2 lately. NBR was in 39 hedge funds' portfolios at the end of September.

  • Here is What Hedge Funds Think About Ingersoll-Rand Plc (IR)
    Finance
    Insider Monkey

    Here is What Hedge Funds Think About Ingersoll-Rand Plc (IR)

    Hedge funds and other investment firms run by legendary investors like Israel Englander and Ray Dalio are entrusted to manage billions of dollars of accredited investors' money because they are without peer in the resources they use to identify the best

  • Generic-drug stocks slammed by report of expanded price-fixing probe
    News
    MarketWatch

    Generic-drug stocks slammed by report of expanded price-fixing probe

    Shares of generic-drug makers fell sharply Monday, after a Washington Post report that an antitrust lawsuit brought by states over two drugs in 2016 has expanded into a major probe of alleged price-fixing across the industry. The case now involves at least 16 companies and 300 drugs, the report said, citing Joseph Nielsen, an assistant attorney general and antitrust investigator in Connecticut, who has been a leader in the probe. The “sandbox” was the word they used to describe the market for generic prescription drugs, where everyone was expected to agree on prices and ensure that all companies made profits.

  • Should You Buy EnCana Corporation (ECA)?
    Finance
    Insider Monkey

    Should You Buy EnCana Corporation (ECA)?

    The elite funds run by legendary investors such as Dan Loeb and David Tepper make hundreds of millions of dollars for themselves and their investors by spending enormous resources doing research on small cap stocks that big investment banks don't follow

  • Is Spotify Technology S.A. (SPOT) A Good Stock To Buy According To Hedge Funds?
    Finance
    Insider Monkey

    Is Spotify Technology S.A. (SPOT) A Good Stock To Buy According To Hedge Funds?

    During the first half of the fourth quarter, the Russell 2000 ETF (IWM) lagged the larger S&P 500 ETF (SPY) by about 4 percentage points as investors worried over the possible ramifications of rising interest rates. The hedge funds and institutional investors we track typically invest more in smaller-cap stocks than an average investor (i.e. In the following paragraphs, we take a closer look at what hedge funds and prominent investors think of Spotify Technology S.A. (NYSE:SPOT) and see how the stock is affected by the recent hedge fund activity.

  • Is Rite Aid Corporation (RAD) Going to Burn These Hedge Funds?
    Finance
    Insider Monkey

    Is Rite Aid Corporation (RAD) Going to Burn These Hedge Funds?

    A market correction in the fourth quarter, spurred by a number of global macroeconomic concerns and rising interest rates ended up having a negative impact on the markets and many hedge funds as a result. This is evident in the fact that the Russell 2,000 ETF underperformed the S&P 500 ETF by 4 percentage points during the first half of the fourth quarter. Let's study the hedge fund sentiment to see how those concerns affected their ownership of Rite Aid Corporation (NYSE:RAD) during the quarter.

  • See what the IHS Markit Score report has to say about Las Vegas Sands Corp.
    Business
    Markit

    See what the IHS Markit Score report has to say about Las Vegas Sands Corp.

    Las Vegas Sands Corp NYSE:LVS Score: Positive (100) 54 days at current score. Upgraded from Neutral on October 18th 2018 View full report here! Summary This company ranked positively in all 3 IHS Markit categories and the Consumer Services

  • Here is What Hedge Funds Think About Tableau Software Inc (DATA)
    Finance
    Insider Monkey

    Here is What Hedge Funds Think About Tableau Software Inc (DATA)

    There are several ways to beat the market, and investing in small cap stocks has historically been one of them. We like to improve the odds of beating the market further by examining what famous hedge fund operators such as Carl Icahn and George Soros

  • See what the IHS Markit Score report has to say about BCE Inc.
    Business
    Markit

    See what the IHS Markit Score report has to say about BCE Inc.

    BCE Inc NYSE:BCE Score: Neutral (57) 31 days at current score. Downgraded from Positive on November 10th 2018 View full report here! Summary This company ranked neutral compared to the Telecommunications Services sector with only 2 positive

  • See what the IHS Markit Score report has to say about Matthews International Corp.
    Business
    Markit

    See what the IHS Markit Score report has to say about Matthews International Corp.

    Matthews International Corp NASDAQ/NGS:MATW Score: Neutral (51) 28 days at current score. Upgraded from Negative on November 13th 2018 View full report here! Summary This company ranked positively in all 3 IHS Markit categories but was neutral

  • See what the IHS Markit Score report has to say about GMS Inc.
    Business
    Markit

    See what the IHS Markit Score report has to say about GMS Inc.

    GMS Inc NYSE:GMS Score: Negative (32) 1 day at current score. Downgraded from Neutral on December 10th 2018 View full report here! Summary This company ranked negatively compared to the Industrials sector despite 2 positive IHS Markit Categories