What to Expect From Caterpillar in 2022
In what's becoming a familiar refrain during earnings season, Caterpillar's (NYSE: CAT) fourth-quarter earnings were pressured by soaring supply chain costs that will extend into 2022. However, on a more positive note, underlying demand remains strong. In addition, management is taking pricing action to offset cost increases and believes that profit margin headwinds will disappear when the supply chain pressures ease. Does it all add up to make a Caterpillar a stock to buy on a dip? Here's the lowdown.
The margin pressures impacting Caterpillar right now are in the table below. Whereas full-year reported operating profit margin increased year over year from 10.9% to 13.5%, Caterpillar's fourth-quarter operating margin declined to 11.7% from 12.3%.
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Source Fool.com
