Back to top

Image: Bigstock

Cummins (CMI) Q2 Earnings Beat Estimates, Decline Y/Y

Read MoreHide Full Article

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. Further, Cummins’ Distribution segment is poised to gain from the acquisitions in North America.

However, Cummins operates in a highly competitive environment. Additionally, the company is facing challenges in its Power Generation business due to weak global demand, mainly for larger units. In addition supplier concentration is also challenging for the company.
 
Estimate Trend & Surprise History

Investors should note that the second-quarter earnings estimate for Cummins has decreased by 2 cents to $2.15 over the past 30 days.

The company has delivered mixed earnings surprises. It has missed the Zacks Consensus Estimate in 2 of the trailing 4 quarters with an average miss of around 2.60%. 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 decreased 8.4% to $2.40 per share in the second quarter of 2016, but surpassed the Zacks Consensus Estimate of $2.15.

CUMMINS INC Price and EPS Surprise

CUMMINS INC Price and EPS Surprise | CUMMINS INC Quote

Revenues

Cummins reported revenues of $4.53 billion, down 10% year over year. Meanwhile, revenues surpassed the Zacks Consensus Estimate of $4.51 billion. The year-over-year decline was due to lower production in the North American and sluggish global demand for off-highway and power generation equipment.

Key Stats/Developments to Note

For 2016, Cummins anticipates revenues to decline by 8% to 10% and EBIT is expected in the range of 11.6%–12.2%.

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’ share price was 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!

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>
 


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Cummins Inc. (CMI) - free report >>

Published in