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Cummins (CMI) Q2 Earnings: How Key Metrics Compare to Wall Street Estimates
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For the quarter ended June 2023, Cummins (CMI - Free Report) reported revenue of $8.64 billion, up 31.2% over the same period last year. EPS came in at $5.18, compared to $4.77 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $8.24 billion, representing a surprise of +4.80%. The company delivered an EPS surprise of -0.19%, with the consensus EPS estimate being $5.19.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Cummins performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net sales- Components: $3.43 billion versus the six-analyst average estimate of $3.30 billion. The reported number represents a year-over-year change of +75.6%.
Net sales- Power System: $1.46 billion versus $1.34 billion estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +21.1% change.
Net sales- Distribution: $2.60 billion versus the six-analyst average estimate of $2.43 billion. The reported number represents a year-over-year change of +15.2%.
Net sales- Eliminations: -$1.91 billion versus -$1.88 billion estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +16.8% change.
Net sales- Engine: $2.99 billion compared to the $2.98 billion average estimate based on six analysts. The reported number represents a change of +7.7% year over year.
Net sales- Accelera: $85 million compared to the $87.37 million average estimate based on six analysts.
Net sales- Engine- Light-duty Automotive: $445 million compared to the $466.06 million average estimate based on four analysts. The reported number represents a change of -2.4% year over year.
Net sales- Engine- Medium-duty Truck and Bus: $942 million versus the four-analyst average estimate of $927.45 million. The reported number represents a year-over-year change of +7.7%.
Net sales- Engine- Off-highway: $484 million compared to the $478.77 million average estimate based on four analysts. The reported number represents a change of +9.3% year over year.
Net sales- Engine- Heavy-duty Truck: $1.12 billion versus $1.07 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +11.6% change.
Net sales- Components- Engine Components: $557 million compared to the $598.42 million average estimate based on two analysts.
Net sales- Components- Software and Electronics: $59 million versus $56.77 million estimated by two analysts on average.
Shares of Cummins have returned +7.8% over the past month versus the Zacks S&P 500 composite's +1.5% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
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Cummins (CMI) Q2 Earnings: How Key Metrics Compare to Wall Street Estimates
For the quarter ended June 2023, Cummins (CMI - Free Report) reported revenue of $8.64 billion, up 31.2% over the same period last year. EPS came in at $5.18, compared to $4.77 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $8.24 billion, representing a surprise of +4.80%. The company delivered an EPS surprise of -0.19%, with the consensus EPS estimate being $5.19.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Cummins performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Net sales- Components: $3.43 billion versus the six-analyst average estimate of $3.30 billion. The reported number represents a year-over-year change of +75.6%.
- Net sales- Power System: $1.46 billion versus $1.34 billion estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +21.1% change.
- Net sales- Distribution: $2.60 billion versus the six-analyst average estimate of $2.43 billion. The reported number represents a year-over-year change of +15.2%.
- Net sales- Eliminations: -$1.91 billion versus -$1.88 billion estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +16.8% change.
- Net sales- Engine: $2.99 billion compared to the $2.98 billion average estimate based on six analysts. The reported number represents a change of +7.7% year over year.
- Net sales- Accelera: $85 million compared to the $87.37 million average estimate based on six analysts.
- Net sales- Engine- Light-duty Automotive: $445 million compared to the $466.06 million average estimate based on four analysts. The reported number represents a change of -2.4% year over year.
- Net sales- Engine- Medium-duty Truck and Bus: $942 million versus the four-analyst average estimate of $927.45 million. The reported number represents a year-over-year change of +7.7%.
- Net sales- Engine- Off-highway: $484 million compared to the $478.77 million average estimate based on four analysts. The reported number represents a change of +9.3% year over year.
- Net sales- Engine- Heavy-duty Truck: $1.12 billion versus $1.07 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +11.6% change.
- Net sales- Components- Engine Components: $557 million compared to the $598.42 million average estimate based on two analysts.
- Net sales- Components- Software and Electronics: $59 million versus $56.77 million estimated by two analysts on average.
View all Key Company Metrics for Cummins here>>>Shares of Cummins have returned +7.8% over the past month versus the Zacks S&P 500 composite's +1.5% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.