Caterpillar Inc.’s (CAT) first-quarter EPS jumped to an all-time quarterly record of $1.84 from $0.36 in the year-ago quarter, driven by higher sales volume. Revenues surged 57% to $12.95 billion due to continued economic growth and improvement in machine demand.

For 2011, Caterpillar expects revenues in the range of $52 billion to $54 billion and EPS of $6.25 to $6.75, the highest profit in the company’s history. Caterpillar’s strong brand name, pricing power and global dealer network enable it to take advantage of the growing need for infrastructure development worldwide.

The company’s planned capital expenditure of $3 billion will boost its long-term potential. The Bucyrus acquisition will position Caterpillar as the #1 mining equipment manufacturer in the U.S. We have upgraded our recommendation from Neutral to Outperform based on its record first-quarter performance and increased guidance.
CATERPILLAR INC (CAT): Free Stock Analysis Report
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