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Cummins (CMI) Q4 Earnings & Revenues Beat Estimates

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Cummins Inc. (CMI - Free Report) is a leading global designer, manufacturer and distributor of diesel and natural gas engines, electric power generation systems, and engine-related components, fuel systems, controls and air handling systems. Cummins is poised to benefit from its innovative products, rising demand for its engines among OEMs, and focus on cost reduction. Further, Cummins’ Distribution segment is poised to gain from the acquisitions in North America and expansion through partnerships.

However, the company is facing challenges in its Power Generation business due to weak global demand.
 
Estimate Trend & Surprise History

Investors should note that the fourth-quarter earnings estimate for Cummins have been stable over the past month.

The company has mostly delivered positive earnings surprises in recent quarters. It surpassed the Zacks Consensus Estimate in 3 of the trailing 4 quarters with an average beat of around 5.13%. Thus, investors have been eagerly awaiting Cummins’ latest earnings report.

We have highlighted some of the key stats from this just-revealed announcement below:
 

Cummins Inc. Price and EPS Surprise

Cummins Inc. Price and EPS Surprise | Cummins Inc. Quote

Earnings

Cummins’ earnings increased to $2.25 per share in the fourth quarter of 2016, and also surpassed the Zacks Consensus Estimate of $2.02.

Revenues

Cummins reported revenues of $4.5 billion, down 6% year over year. Meanwhile, revenues surpassed the Zacks Consensus Estimate of $4.37 billion. The year-over-year decline was due to lower commercial truck production in North America and weak global demand for industrial engines and power generation equipment.

Key Stats/Developments to Note

For 2017, Cummins anticipates revenues to be flat or decline by 5% and EBIT is expected in the range of 11%–11.5%.

Zacks Rank

Currently, Cummins has a Zacks Rank #3 (Hold), but that could change following its earnings report which has just released.

Market Reaction

Cummins’ shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.

Check back later for our full write up on Cummins’ earnings report!

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