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.
Estimate Trend & Surprise History
Investors should note that the first-quarter earnings estimate for Cummins have been rising over the past month.
The company has delivered positive earnings surprises in recent quarters. It surpassed the Zacks Consensus Estimate in all of the trailing four quarters with an average beat of around 8.33%. Thus, investors have been eagerly awaiting Cummins’ latest earnings report.
We have highlighted some of the key stats from this just-revealed announcement below:
Earnings
Cummins’ earnings increased 26.2% year over year to $2.36 per share in the first quarter of 2017, and also surpassed the Zacks Consensus Estimate of $1.81.
Revenues
Cummins reported revenues of $4.59 billion, up 7% year over year. Revenues also surpassed the Zacks Consensus Estimate of $4.18 billion. The year-over-year increase was due to higher demand from construction and mining customers as well as higher sales from a distributor acquired in the fourth quarter of 2016.
Key Stats/Developments to Note
For 2017, Cummins anticipates revenues to grow by 4% to 6%,compared to the prior guidance of revenues remaining flat or declining by 5%. EBIT is expected in the range of 11.75%–12.5%, up from11%–11.5%.
Zacks Rank
Currently, Cummins has a Zacks Rank #2 (Buy).
Market Reaction
Cummins’ shares have risen 5.7% in the pre-trading session so far. 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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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.
Estimate Trend & Surprise History
Investors should note that the first-quarter earnings estimate for Cummins have been rising over the past month.
The company has delivered positive earnings surprises in recent quarters. It surpassed the Zacks Consensus Estimate in all of the trailing four quarters with an average beat of around 8.33%. Thus, investors have been eagerly awaiting Cummins’ latest earnings report.
We have highlighted some of the key stats from this just-revealed announcement below:
Earnings
Cummins’ earnings increased 26.2% year over year to $2.36 per share in the first quarter of 2017, and also surpassed the Zacks Consensus Estimate of $1.81.
Revenues
Cummins reported revenues of $4.59 billion, up 7% year over year. Revenues also surpassed the Zacks Consensus Estimate of $4.18 billion. The year-over-year increase was due to higher demand from construction and mining customers as well as higher sales from a distributor acquired in the fourth quarter of 2016.
Key Stats/Developments to Note
For 2017, Cummins anticipates revenues to grow by 4% to 6%,compared to the prior guidance of revenues remaining flat or declining by 5%. EBIT is expected in the range of 11.75%–12.5%, up from11%–11.5%.
Zacks Rank
Currently, Cummins has a Zacks Rank #2 (Buy).
Market Reaction
Cummins’ shares have risen 5.7% in the pre-trading session so far. 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!
Sell These Stocks. Now.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500. See today's Zacks ""Strong Sells"" absolutely free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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