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Cummins (CMI) to Report Q3 Earnings: Here's What to Expect
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Cummins Inc. (CMI - Free Report) is slated to release third-quarter 2023 results on Nov 2, before market open. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share and revenues is pegged at $4.63 and $8.14 billion, respectively.
For the third quarter, the consensus estimate for CMI’s earnings per share has moved up by 6 cents in the past seven days. Its bottom-line estimates imply growth of 44.2% from the year-ago reported number.
The Zacks Consensus Estimate for its quarterly revenues suggests a year-over-year rise of 10.9%. Over the trailing four quarters, CMI surpassed earnings estimates on one occasion and missed thrice, the average negative surprise being 5.51%. This is depicted in the graph below:
In second-quarter 2023, CMI’s adjusted earnings per share of $5.18 improved substantially from $4.17 in the prior-year quarter. The figure, however, missed the Zacks Consensus Estimate of $5.19.
Cummins’ revenues totaled $8,638 million, up 31.2% from $6,586 million recorded in the year-ago quarter. The top line also beat the Zacks Consensus Estimate of $8,242 million.
Factors to Shape Q3 Results
Cummins is making significant strides in inorganic growth through the acquisitions of Jacobs Vehicle Systems, Meritor and the Siemens Commercial Vehicles business. The acquisitions are likely to have acted as a tailwind for Cummins in the to-be-reported quarter.
The company has a growing pipeline of electrolyzer orders. At the end of the second quarter of 2023, Cummins’ electrolyzer backlog was $500 million. The expansion of the Fridley facility, in addition to the augmentation of capacity on a global scale, will effectively cater to this increasing demand, which is likely to buoy the results of the quarter under review.
Moreover, an upbeat projection for full-year 2023 revenues sparks optimism surrounding third-quarter results. The company expects full-year revenues to increase by 15-20% year over year, driven by growth across all segments. In 2023, Cummins expects New Power revenues to reach $350-$400 million, up from $198 million in 2022.
Here’s a brief look at the revenues and EBITDA estimates for Cummins’ segments.
For the third quarter, our estimate for quarterly sales of the Engine segment is pegged at $2,803.2 million, suggesting a rise from $2,779 million reported in third-quarter 2022. Our estimate for the segment’s EBITDA is $392.2 million, implying an increase from $363 recorded in the same quarter of 2022.
For the third quarter, our estimate for sales from the Distribution segment is $2,464.9 million, indicating a rise from year-ago sales of $2,239. Our forecast for the segment’s EBITDA is $274.7 million, suggesting a rise from $225 reported in the third quarter of 2022.
For the quarter under discussion, we expect net sales from the Power System segment to be $1,350.9 million, suggesting a slight rise from $1,349 million recorded in third-quarter 2022. Our forecast for the segment’s EBITDA is $218.4 million, implying a rise from $193 million generated in the same quarter of 2022.
Our projection of $3,097.2 million for the Components segment’s quarterly net sales implies an increase from $2,703 million in the third quarter of 2022. Our estimate for the segment’s EBITDA is pegged at $470.3 million, indicating a rise from $297 million recorded in third-quarter 2022.
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. That is the case here, as elaborated below.
Earnings ESP: CMI has an Earnings ESP of +1.05%. This is because the Most Accurate Estimate is pegged 5 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 #3.
Earnings Whispers for Other Auto Stocks
Nikola (NKLA - Free Report) is scheduled to post third-quarter earnings on Nov 2. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share is pegged at a loss of 15 cents per share. The company has an Earnings ESP of 0.00% and a Zacks Rank #2.
NKLA surpassed earnings estimates in all of the trailing four quarters, the average surprise being 17.90%.
Lucid Group (LCID - Free Report) is scheduled to post third-quarter earnings on Nov 7. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share is pegged at a loss of 27 cents per share. The company has an Earnings ESP of 0.00% and a Zacks Rank #2.
LCID missed earnings estimates in all of the trailing four quarters, the average negative surprise being 12.08%.
Rivian (RIVN - Free Report) is scheduled to post third-quarter earnings on Nov 7. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share is pegged at a loss of $1.36 per share. The company has an Earnings ESP of -0.86% and a Zacks Rank #3.
RIVN surpassed earnings estimates in all of the trailing four quarters, the average surprise being 15.22%.
Image: Bigstock
Cummins (CMI) to Report Q3 Earnings: Here's What to Expect
Cummins Inc. (CMI - Free Report) is slated to release third-quarter 2023 results on Nov 2, before market open. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share and revenues is pegged at $4.63 and $8.14 billion, respectively.
For the third quarter, the consensus estimate for CMI’s earnings per share has moved up by 6 cents in the past seven days. Its bottom-line estimates imply growth of 44.2% from the year-ago reported number.
The Zacks Consensus Estimate for its quarterly revenues suggests a year-over-year rise of 10.9%. Over the trailing four quarters, CMI surpassed earnings estimates on one occasion and missed thrice, the average negative surprise being 5.51%. This is depicted in the graph below:
Cummins Inc. Price and EPS Surprise
Cummins Inc. price-eps-surprise | Cummins Inc. Quote
Q2 Highlights
In second-quarter 2023, CMI’s adjusted earnings per share of $5.18 improved substantially from $4.17 in the prior-year quarter. The figure, however, missed the Zacks Consensus Estimate of $5.19.
Cummins’ revenues totaled $8,638 million, up 31.2% from $6,586 million recorded in the year-ago quarter. The top line also beat the Zacks Consensus Estimate of $8,242 million.
Factors to Shape Q3 Results
Cummins is making significant strides in inorganic growth through the acquisitions of Jacobs Vehicle Systems, Meritor and the Siemens Commercial Vehicles business. The acquisitions are likely to have acted as a tailwind for Cummins in the to-be-reported quarter.
The company has a growing pipeline of electrolyzer orders. At the end of the second quarter of 2023, Cummins’ electrolyzer backlog was $500 million. The expansion of the Fridley facility, in addition to the augmentation of capacity on a global scale, will effectively cater to this increasing demand, which is likely to buoy the results of the quarter under review.
Moreover, an upbeat projection for full-year 2023 revenues sparks optimism surrounding third-quarter results. The company expects full-year revenues to increase by 15-20% year over year, driven by growth across all segments. In 2023, Cummins expects New Power revenues to reach $350-$400 million, up from $198 million in 2022.
Here’s a brief look at the revenues and EBITDA estimates for Cummins’ segments.
For the third quarter, our estimate for quarterly sales of the Engine segment is pegged at $2,803.2 million, suggesting a rise from $2,779 million reported in third-quarter 2022. Our estimate for the segment’s EBITDA is $392.2 million, implying an increase from $363 recorded in the same quarter of 2022.
For the third quarter, our estimate for sales from the Distribution segment is $2,464.9 million, indicating a rise from year-ago sales of $2,239. Our forecast for the segment’s EBITDA is $274.7 million, suggesting a rise from $225 reported in the third quarter of 2022.
For the quarter under discussion, we expect net sales from the Power System segment to be $1,350.9 million, suggesting a slight rise from $1,349 million recorded in third-quarter 2022. Our forecast for the segment’s EBITDA is $218.4 million, implying a rise from $193 million generated in the same quarter of 2022.
Our projection of $3,097.2 million for the Components segment’s quarterly net sales implies an increase from $2,703 million in the third quarter of 2022. Our estimate for the segment’s EBITDA is pegged at $470.3 million, indicating a rise from $297 million recorded in third-quarter 2022.
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. That is the case here, as elaborated below.
Earnings ESP: CMI has an Earnings ESP of +1.05%. This is because the Most Accurate Estimate is pegged 5 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 #3.
Earnings Whispers for Other Auto Stocks
Nikola (NKLA - Free Report) is scheduled to post third-quarter earnings on Nov 2. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share is pegged at a loss of 15 cents per share. The company has an Earnings ESP of 0.00% and a Zacks Rank #2.
You can see the complete list of today’s Zacks #1 Rank stocks here.
NKLA surpassed earnings estimates in all of the trailing four quarters, the average surprise being 17.90%.
Lucid Group (LCID - Free Report) is scheduled to post third-quarter earnings on Nov 7. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share is pegged at a loss of 27 cents per share. The company has an Earnings ESP of 0.00% and a Zacks Rank #2.
LCID missed earnings estimates in all of the trailing four quarters, the average negative surprise being 12.08%.
Rivian (RIVN - Free Report) is scheduled to post third-quarter earnings on Nov 7. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share is pegged at a loss of $1.36 per share. The company has an Earnings ESP of -0.86% and a Zacks Rank #3.
RIVN surpassed earnings estimates in all of the trailing four quarters, the average surprise being 15.22%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.