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Cummins (CMI) to Report Q1 Earnings: Here's What to Expect
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Cummins Inc. (CMI - Free Report) is slated to release first-quarter 2023 results on May 2, before market open. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share and revenues is pegged at $4.76 and $8.01 billion, respectively.
For the first quarter, the consensus estimate for CMI’s earnings per share has moved up by 2 cents in the past seven days. Its bottom-line estimates imply a rise of 17.82% from the year-ago reported number. The Zacks Consensus Estimate for its quarterly revenues suggests a year-over-year rise of 25.48%. Over the trailing four quarters, CMI surpassed earnings estimates on two occasions and missed twice, the average negative surprise being 3.57%. This is depicted in the graph below:
In fourth-quarter 2022, CMI’s adjusted earnings per share of $4.52 improved substantially from $2.85 in the prior-year quarter. But the figure missed the Zacks Consensus Estimate of $4.66. Weaker-than-expected EBITDA in the Engine, Components and New Power segments resulted in the underperformance. Cummins’ revenues totaled $7.8 billion, up 32.8% from the $5.9 billion recorded in the year-ago quarter. The top line also beat the Zacks Consensus Estimate of $7.4 billion.
Factors to Shape Q1 Results
Meritor’s buyout continues to strengthen power generation demand for Cummins’ in the North American truck market. With a growing pipeline of electrolyzer orders, Cummins expects strong momentum in its electrolyzer technology and green hydrogen production opportunities.
The acquisition of a 50% stake in Momentum Fuel, JV with Rush Enterprises and alliances with Sinopec, Isuzu Motors, Werner Enterprises and Chevron are set to boost opportunities for the firm. Its partnership with Iberdrola positions Cummins as a leading supplier of electrolyzer systems for large-scale projects in Europe. The acquisitions and alliances are likely to have acted as a tailwind for Cummins in the to-be-reported quarter.
Here’s a brief look at the revenue and EBITDA estimates for Cummins’ segments.
The Zacks Consensus Estimate for quarterly sales of the Engine segment is pegged at $2,919 million, suggesting a rise from $2,753 million reported in first-quarter 2022. Also, the consensus mark for the segment’s EBITDA is $441 million, implying an increase from $392 recorded in the same quarter of 2022.
For the first quarter, the Zacks Consensus Estimate for sales from the Distribution segment is $2,272 million, indicating a rise from year-ago sales of $2,117. The consensus mark for the segment’s EBITDA is $209 million, suggesting a rise from $110 reported in the first quarter of 2022.
For the quarter under discussion, the Zacks Consensus Estimate for net sales from the Power System segment is $1,306 million, suggesting a rise from $1,160 million recorded in first-quarter 2022. The consensus mark for the segment’s EBITDA is $160 million, implying a rise from $90 million generated in the same quarter of 2022.
The Zacks Consensus Estimate of $3,237 million for the Components segment’s quarterly net sales implies an increase from $1,988 million in the first quarter of 2022. The consensus estimate for the segment’s EBITDA is pegged at $472 million, indicating a rise from $320 million recorded in first-quarter 2022.
For the New Power segment, the consensus estimate for revenues is $68 million, indicating a rise from $31 million recorded in the first quarter of 2022. The consensus mark for pretax loss from the segment is pegged at $68 million.
Earnings Whispers
Our proven model predicts an earnings beat for Cummins for the quarter to be reported, as it has the right combination of the two key ingredients. A combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: CMI has an Earnings ESP of +1.59%. This is because the Most Accurate Estimate is pegged 7 cents higher than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: It currently carries a Zacks Rank of #2.
Other Stocks With the Favorable Combination
Let’s take a look at some other players from the auto space that, according to our model, have the right combination of elements to post an earnings beat for the quarter to be reported:
BorgWarner (BWA - Free Report) will release first-quarter 2023 results on May 4. The company has an Earnings ESP of +2.03% and a Zacks Rank #3.
The Zacks Consensus Estimate for BorgWarner’s to-be-reported quarter’s earnings and revenues is pegged at $1.13 per share and $4.19 billion, respectively. BWA surpassed earnings estimates in all trailing four quarters in the fiscal year 2022, the average surprise being 24.02%.
The Zacks Consensus Estimate for American Axle’s to-be-reported quarter’s loss and revenues is pegged at 6 cents per share and $1.53 billion, respectively. AXL surpassed earnings estimates in three out of the trailing four quarters and missed in one in the fiscal year 2022, the average surprise being 325.18%.
Aeva Technologies (AEVA - Free Report) will release first-quarter 2023 results on May 10. The company has an Earnings ESP of +6.25% and a Zacks Rank #3.
The Zacks Consensus Estimate for Aeva’s to-be-reported quarter’s loss and revenues is pegged at 16 cents per share and $0.88 million, respectively. AEVA surpassed earnings estimates in three out of the trailing four quarters and missed in one in the fiscal year 2022, the average surprise being 13.68%.
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Cummins (CMI) to Report Q1 Earnings: Here's What to Expect
Cummins Inc. (CMI - Free Report) is slated to release first-quarter 2023 results on May 2, before market open. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share and revenues is pegged at $4.76 and $8.01 billion, respectively.
For the first quarter, the consensus estimate for CMI’s earnings per share has moved up by 2 cents in the past seven days. Its bottom-line estimates imply a rise of 17.82% from the year-ago reported number. The Zacks Consensus Estimate for its quarterly revenues suggests a year-over-year rise of 25.48%. Over the trailing four quarters, CMI surpassed earnings estimates on two occasions and missed twice, the average negative surprise being 3.57%. This is depicted in the graph below:
Cummins Inc. Price and EPS Surprise
Cummins Inc. price-eps-surprise | Cummins Inc. Quote
Q4 Highlights
In fourth-quarter 2022, CMI’s adjusted earnings per share of $4.52 improved substantially from $2.85 in the prior-year quarter. But the figure missed the Zacks Consensus Estimate of $4.66. Weaker-than-expected EBITDA in the Engine, Components and New Power segments resulted in the underperformance. Cummins’ revenues totaled $7.8 billion, up 32.8% from the $5.9 billion recorded in the year-ago quarter. The top line also beat the Zacks Consensus Estimate of $7.4 billion.
Factors to Shape Q1 Results
Meritor’s buyout continues to strengthen power generation demand for Cummins’ in the North American truck market. With a growing pipeline of electrolyzer orders, Cummins expects strong momentum in its electrolyzer technology and green hydrogen production opportunities.
The acquisition of a 50% stake in Momentum Fuel, JV with Rush Enterprises and alliances with Sinopec, Isuzu Motors, Werner Enterprises and Chevron are set to boost opportunities for the firm. Its partnership with Iberdrola positions Cummins as a leading supplier of electrolyzer systems for large-scale projects in Europe. The acquisitions and alliances are likely to have acted as a tailwind for Cummins in the to-be-reported quarter.
Here’s a brief look at the revenue and EBITDA estimates for Cummins’ segments.
The Zacks Consensus Estimate for quarterly sales of the Engine segment is pegged at $2,919 million, suggesting a rise from $2,753 million reported in first-quarter 2022. Also, the consensus mark for the segment’s EBITDA is $441 million, implying an increase from $392 recorded in the same quarter of 2022.
For the first quarter, the Zacks Consensus Estimate for sales from the Distribution segment is $2,272 million, indicating a rise from year-ago sales of $2,117. The consensus mark for the segment’s EBITDA is $209 million, suggesting a rise from $110 reported in the first quarter of 2022.
For the quarter under discussion, the Zacks Consensus Estimate for net sales from the Power System segment is $1,306 million, suggesting a rise from $1,160 million recorded in first-quarter 2022. The consensus mark for the segment’s EBITDA is $160 million, implying a rise from $90 million generated in the same quarter of 2022.
The Zacks Consensus Estimate of $3,237 million for the Components segment’s quarterly net sales implies an increase from $1,988 million in the first quarter of 2022. The consensus estimate for the segment’s EBITDA is pegged at $472 million, indicating a rise from $320 million recorded in first-quarter 2022.
For the New Power segment, the consensus estimate for revenues is $68 million, indicating a rise from $31 million recorded in the first quarter of 2022. The consensus mark for pretax loss from the segment is pegged at $68 million.
Earnings Whispers
Our proven model predicts an earnings beat for Cummins for the quarter to be reported, as it has the right combination of the two key ingredients. A combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: CMI has an Earnings ESP of +1.59%. This is because the Most Accurate Estimate is pegged 7 cents higher than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: It currently carries a Zacks Rank of #2.
Other Stocks With the Favorable Combination
Let’s take a look at some other players from the auto space that, according to our model, have the right combination of elements to post an earnings beat for the quarter to be reported:
BorgWarner (BWA - Free Report) will release first-quarter 2023 results on May 4. The company has an Earnings ESP of +2.03% and a Zacks Rank #3.
The Zacks Consensus Estimate for BorgWarner’s to-be-reported quarter’s earnings and revenues is pegged at $1.13 per share and $4.19 billion, respectively. BWA surpassed earnings estimates in all trailing four quarters in the fiscal year 2022, the average surprise being 24.02%.
American Axle (AXL - Free Report) will release first-quarter 2023 results on May 5. The company has an Earnings ESP of +36.00% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for American Axle’s to-be-reported quarter’s loss and revenues is pegged at 6 cents per share and $1.53 billion, respectively. AXL surpassed earnings estimates in three out of the trailing four quarters and missed in one in the fiscal year 2022, the average surprise being 325.18%.
Aeva Technologies (AEVA - Free Report) will release first-quarter 2023 results on May 10. The company has an Earnings ESP of +6.25% and a Zacks Rank #3.
The Zacks Consensus Estimate for Aeva’s to-be-reported quarter’s loss and revenues is pegged at 16 cents per share and $0.88 million, respectively. AEVA surpassed earnings estimates in three out of the trailing four quarters and missed in one in the fiscal year 2022, the average surprise being 13.68%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.