Cummins Earnings Preview: Can This Streak Continue?

Cummins (NYSE:CMI) will report earnings before markets open on Tuesday, April 30th. Cummins Inc. designs, manufactures, distributes and services diesel and natural gas engines. The Company also manufactures electric power generation systems and engine-related component products, including filtration and exhaust aftertreatment, fuel systems, controls, and air handling systems.

Here is your Cheat Sheet to Cummins Earnings:

Earnings Expectations: Analysts expect earnings of $1.86 per share on revenues of $3.98 billion. Currently, the company’s P/E ratio stands at 12.40.

Analyst Trends:

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 $2.27 to a profit $2.15. For the current year, the average estimate is a profit of $8.77, which is worse than the estimate ninety days ago.

Earnings Trends:

Here’s how Cummins has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 14,340 10,800 13,230 18,050 17,330
Diluted EPS ($) 3.84 2.16 5.28 9.55 8.67

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Dec. 31, 2011 Mar. 31, 2012 Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012
Revenue ($) in millions 4,921 4,472 4,452 4,118 4,292
Diluted EPS ($) 2.866 2.38 2.47 1.86 1.956

Past Performance:
Cummins has beat analyst estimates 4 times in the past four quarters. Shareholders could expect a boost if the company beats estimates.

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