Twitter, Caterpillar Stocks Plunge After Strong Quarterly Results

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Twitter, Caterpillar Stocks Plunge After Strong Quarterly Results

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 Twitter, Caterpillar Stocks Plunge After Strong Quarterly Results
Image source: Pressmaster,Shutterstock

Summary

  • Twitter stock plunged 11.25% to US$65.09 while Caterpillar ended the session down 0.10% to US$227.24 per share after regaining from a 2.08% slump in intraday trade.
  • Twitter revenues jumped 28% to US$1.04 billion in the first quarter of 2021, compared to US$800 million in the corresponding period a year ago.
  • Caterpillar’s revenues rose 12% to US$11.9 billion in the reporting quarter, compared to the figures in the same period a year ago.

The stocks of social media company Twitter Inc. (NYSE:TWTR) fell sharply in after-market trade while that of the construction firm Caterpillar Inc. (NYSE:CAT) recovered some grounds in the closing session after their robust earnings reports on Thursday, April 29.

Twitter plunged 11.25% to US$65.09 while Caterpillar ended the session down 0.10% to US$227.24 after regaining from a 2.08% slump in intraday trade.

These sharp fluctuations have caught market watchers off guard, especially after their strong earnings reports. Experts said that investors may have decided to cash in, given the uncertainties in the economy.

Pic Credit: Pixabay.

Also Read: What drove Twitter’s Q4 Revenue to Record High?

Twitter Q1 Earnings

Twitter’s revenue jumped 28% to US$1.04 billion in the first quarter of 2021, compared to US$800 million in the corresponding period a year ago. The company also reported a profit of US$68 million in contrast to an US$8.4 million loss in the same period a year ago.

In its forward guidance, the social media company further noted that it expects revenues between US$980 million and US$1.08 billion in the second quarter.

Twitter’s daily users grew by 7 million to 199 million during the quarter. Also, its ad revenue surged 32% to US$899 million in the first quarter. The company, however, acknowledged that it has been mindful of Apple’s new privacy tool which can affect its ad revenues.

Also Read: UPS Stocks Surge After Record Quarterly Earnings Report

Caterpillar Q1 Earnings

Caterpillar’s revenues rose 12% to US$11.9 billion in the reporting quarter, compared to the figures in the same period a year ago. Its profit per share was US$2.77.

The strong growth was driven by higher sales volume as dealers improved their inventories, more than what was witnessed in the first quarter of 2020. It also reported free cash of US$11.3 billion. Its operating margin was 15.3%, compared with 13.2% in the year-ago quarter. Furthermore, Caterpillar’s operating cash flow was US$1.9 billion, while its enterprise cash stood at US$11.3 billion at the end of the quarter on March 31, 2021.

Lauding the Caterpillar term for the impressive performance, CEO Jim Umpleby said that the company’s thrust on minimizing the supply chain risks while at the same time its persistent efforts to execute its strategy for long-term growth have paid off abundantly.

Founded in 1925, Caterpillar Inc. has been a leading manufacturer of various industrial equipment, including those used in the construction and mining industry, diesel and electric rail engines, and natural gas turbines. Caterpillar has its footprints on every continent.

In 2019, Caterpillar’s sales and revenues stood at US$53.8 billion.

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