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Caterpillar Inc. (NYSE: CAT) reported its most recent quarterly results before the markets opened on Wednesday. The company said that it had $2.83 in earnings per share (EPS) and $14.4 billion in revenue, which compares with consensus estimates of $3.12 in EPS and $14.44 billion in revenue. The second quarter of last year reportedly had EPS of $2.97 on $14.01 billion in revenue.

Revenue growth this past quarter was due primarily to favorable price realization and higher sales volume driven by improved demand for equipment, including a favorable impact from changes in dealer inventories. The increase was partially offset by unfavorable currency impacts.

Sales increased in the Construction Industries and Resource Industries units, while Energy & Transportation sales decreased. Sales increased in North America and Latin America, partially offset by decreases in Asia/Pacific and EAME.

Looking ahead to the 2019 full year, the company expects modest sales growth, as well as EPS in the range of $12.06 to $13.06. Consensus estimates call for $12.24 in EPS and $56.54 billion in revenue for the year.

Jim Umpleby, Caterpillar’s board chair and chief executive, commented:

Sales and revenues increased this quarter, including a record performance from Construction Industries, which reflected our strong competitive position globally. Our strong operating cash flow in the quarter allowed us to repurchase shares and pay dividends of about $1.9 billion. This is in line with our intention to return substantially all free cash flow to shareholders.

Shares of Caterpillar traded down 4.5% early Wednesday at $131.92, in a 52-week range of $112.06 to $159.37. The consensus price target is $147.13.