Caterpillar Inc. (CAT) shares tumbled Wednesday after the company reported disappointing second-quarter earnings that fell short of analysts’ expectations. The heavy equipment manufacturer posted a profit of $1.69 per share, while analysts were expecting $1.71.

The company cited weaker-than-anticipated demand in the mining and construction sectors as key contributors to the shortfall. Caterpillar lowered its full-year revenue outlook, further fueling investor concerns.

Key Highlights from the Report:

• Earnings per share: $1.69 (vs. $1.71 expected)
• Revenue: $14.15 billion (slightly below expectations)
• Outlook: Full-year revenue forecast lowered

“We are facing a challenging environment, and the lower outlook reflects that,” said CEO Doug Oberhelman in a statement. “We are taking decisive actions to manage costs and improve operational efficiency.”

The company’s stock price fell by more than 4% in early trading following the earnings release. Analysts are closely watching Caterpillar’s performance as a bellwether for the global economy.

Analyst Commentary:

“The results were clearly disappointing, and the lowered guidance adds to the uncertainty,” said Stephen Volkmann, an analyst at Jefferies. “We are lowering our rating to ‘hold’ and reducing our price target.”

Caterpillar’s management team is scheduled to hold a conference call with investors later today to discuss the results and outlook in more detail.