Cummins Earnings: Here’s Why Investors are Happy Now

Cummins Inc. (NYSE:CMI) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 3.90%.

Cummins Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 10.2% to $2.2 in the quarter versus EPS of $2.45 in the year-earlier quarter.

Revenue: Rose 1.64% to $4.53 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Cummins Inc. reported adjusted EPS income of $2.2 per share. By that measure, the company beat the mean analyst estimate of $1.99. It beat the average revenue estimate of $4.26 billion.

Quoting Management: “The increase in our dividend, combined with our current share repurchase program, reflects our confidence in the long-term prospects for the Company and demonstrates our commitment to increasing returns to shareholders,” said Tom Linebarger, Chairman and Chief Executive Officer. “With today’s announcement we have increased the dividend by a total of 257% over the last four years, while continuing to invest in products and our global footprint that will drive future profitable growth,” continued Linebarger.

Key Stats (on next page)…

Revenue increased 15.37% from $3.92 billion in the previous quarter. EPS increased 52.78% from $1.44 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $2.17 to a profit $2.12. For the current year, the average estimate has moved down from a profit of $8.22 to a profit of $7.9 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)