We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Cummins (CMI) Q4 Earnings Top Estimates, Guidance Revised
Read MoreHide Full Article
Cummins Inc. (CMI - Free Report) reported adjusted earnings of $3.03 per share in fourth-quarter 2017, surpassing the Zacks Consensus Estimate of $2.65. The company’s bottom line was $2.25 in the year-ago quarter.
Excluding the tax reform impact, net income was $503 million in fourth-quarter 2017.
Revenues improved 22% year over year to $5.48 billion in the reported quarter. The top line also outpaced the Zacks Consensus Estimate of $5.2 billion. The year-over-year rise was owing to increased demand for trucks, construction and mining equipment.
Operating income increased to $595 million from $507 million a year ago. Earnings before interest and taxes (EBIT) were $620 million (11.3% of sales) compared with $526 million (11.7% of sales) a year ago.
Fiscal 2017 Results
Cummins reported adjusted earnings of $5.97 per share in fiscal 2017, down from $8.23 earned in fiscal 2016. Also, earnings missed the Zacks Consensus Estimate of $10.22.
Net income fell to $999 million from $1.4 billion recorded a year ago. Consolidated revenues rose to $20.43 billion, up from $17.5 billion in the prior fiscal. Moreover, the figure beat the Zacks Consensus Estimate of $20.15 billion.
Segmental Performance
Sales at the Engine segment grew 16% to $2.3 billion on the back of a 14% increase in on-highway revenues and 27% in off-highway revenues, resulting from growing demand in global truck and construction market. The segment’s EBIT increased to $224 million (9.8% of sales) from $194 million (9.9% of sales) a year ago.
Sales at the Components segment surged 32% to $1.6 billion owing to revenue growth of 35% in North America in addition to international sales increase of 30% on the back of higher commercial truck manufacturing in North America and China. The segment’s EBIT was $168 million (10.8% of sales) compared with the year-ago tally of $140 million (11.9% of sales).
Sales at the Power Generation segment augmented 18% to $1.1 billion, banking on increased demand in mining, oil and gas and power generation markets. The segment’s EBIT rose to $95 million (8.6% of sales) in fourth-quarter 2017 from $68 million (7.3% of sales) in fourth-quarter 2016.
Sales at the Distribution segment shot up 16% to $1.9 billion. Revenues benefited from a 21% rise in the North American segment and a 7% ascent in the international markets. The segment’s EBIT plunged to $97 million (5% of sales) from $122 million (7.3% of sales) a year ago.
Financial Position
Cummins’ cash and cash equivalents increased to $1.37 billion as of Dec 31, 2017 from $1.12 billion as of Dec 31, 2016. Long-term debt totaled $1.59 billion as of Dec 31, 2017, a slight increase from $1.57 billion recorded on Dec 31, 2016.
At the fiscal 2017-end, Cummins’ net operating cash inflow increased to $2.3 billion from $1.9 billion in the same period last year. Capital expenditures declined to $506 million from $531 million within the same time frame.
Capital Deployment
In 2017, Cummins returned $1.2 billion to shareholders in the form of dividends and share buybacks. The company achieved its plan to return 50% of operating cash inflow in the year.
2018 Guidance
For 2018, Cummins anticipates revenues to grow 4-8% compared with the prior outlook of 14-15% rise in revenues. EBIT is expected in the range of 15.8-16.2%, an increase from the previous projection of 11.8-12.2%.
Peugeot has an expected long-term growth rate of 16.6%. Shares of the company have climbed 2.6% in the last 30 days.
Lear Corp has an expected long-term growth rate of 7.1%. The stock has jumped 21.2% in the last six months.
Genuine Parts has an expected long-term growth rate of 7.2%. In the last six months, shares of the company have rallied 18.4%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
Cummins (CMI) Q4 Earnings Top Estimates, Guidance Revised
Cummins Inc. (CMI - Free Report) reported adjusted earnings of $3.03 per share in fourth-quarter 2017, surpassing the Zacks Consensus Estimate of $2.65. The company’s bottom line was $2.25 in the year-ago quarter.
Excluding the tax reform impact, net income was $503 million in fourth-quarter 2017.
Revenues improved 22% year over year to $5.48 billion in the reported quarter. The top line also outpaced the Zacks Consensus Estimate of $5.2 billion. The year-over-year rise was owing to increased demand for trucks, construction and mining equipment.
Cummins Inc. Price, Consensus and EPS Surprise
Cummins Inc. Price, Consensus and EPS Surprise | Cummins Inc. Quote
Operating income increased to $595 million from $507 million a year ago. Earnings before interest and taxes (EBIT) were $620 million (11.3% of sales) compared with $526 million (11.7% of sales) a year ago.
Fiscal 2017 Results
Cummins reported adjusted earnings of $5.97 per share in fiscal 2017, down from $8.23 earned in fiscal 2016. Also, earnings missed the Zacks Consensus Estimate of $10.22.
Net income fell to $999 million from $1.4 billion recorded a year ago. Consolidated revenues rose to $20.43 billion, up from $17.5 billion in the prior fiscal. Moreover, the figure beat the Zacks Consensus Estimate of $20.15 billion.
Segmental Performance
Sales at the Engine segment grew 16% to $2.3 billion on the back of a 14% increase in on-highway revenues and 27% in off-highway revenues, resulting from growing demand in global truck and construction market. The segment’s EBIT increased to $224 million (9.8% of sales) from $194 million (9.9% of sales) a year ago.
Sales at the Components segment surged 32% to $1.6 billion owing to revenue growth of 35% in North America in addition to international sales increase of 30% on the back of higher commercial truck manufacturing in North America and China. The segment’s EBIT was $168 million (10.8% of sales) compared with the year-ago tally of $140 million (11.9% of sales).
Sales at the Power Generation segment augmented 18% to $1.1 billion, banking on increased demand in mining, oil and gas and power generation markets. The segment’s EBIT rose to $95 million (8.6% of sales) in fourth-quarter 2017 from $68 million (7.3% of sales) in fourth-quarter 2016.
Sales at the Distribution segment shot up 16% to $1.9 billion. Revenues benefited from a 21% rise in the North American segment and a 7% ascent in the international markets. The segment’s EBIT plunged to $97 million (5% of sales) from $122 million (7.3% of sales) a year ago.
Financial Position
Cummins’ cash and cash equivalents increased to $1.37 billion as of Dec 31, 2017 from $1.12 billion as of Dec 31, 2016. Long-term debt totaled $1.59 billion as of Dec 31, 2017, a slight increase from $1.57 billion recorded on Dec 31, 2016.
At the fiscal 2017-end, Cummins’ net operating cash inflow increased to $2.3 billion from $1.9 billion in the same period last year. Capital expenditures declined to $506 million from $531 million within the same time frame.
Capital Deployment
In 2017, Cummins returned $1.2 billion to shareholders in the form of dividends and share buybacks. The company achieved its plan to return 50% of operating cash inflow in the year.
2018 Guidance
For 2018, Cummins anticipates revenues to grow 4-8% compared with the prior outlook of 14-15% rise in revenues. EBIT is expected in the range of 15.8-16.2%, an increase from the previous projection of 11.8-12.2%.
Zacks Rank & Key Picks
Cummins carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are Peugeot SA , Lear Corporation (LEA - Free Report) and Genuine Parts Company (GPC - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Peugeot has an expected long-term growth rate of 16.6%. Shares of the company have climbed 2.6% in the last 30 days.
Lear Corp has an expected long-term growth rate of 7.1%. The stock has jumped 21.2% in the last six months.
Genuine Parts has an expected long-term growth rate of 7.2%. In the last six months, shares of the company have rallied 18.4%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>