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Cummins (CMI) Q1 Earnings and Revenues Top 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.

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:

Cummins Inc. Price and EPS Surprise

 

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

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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