Cummins Inc. Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Cummins, Inc. (NYSE:CMI) will unveil its latest earnings on Thursday, February 2, 2012. Cummins is a company engaged in the design, manufacturing, and distribution of diesel and natural gas engines and related technologies. Its services to markets worldwide include electric power generation systems and engine-related component products.

Cummins, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of $2.23 per share, a rise of 21.2% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $2.29. Between one and three months ago, the average estimate moved down. It has risen from $2.21 during the last month. For the year, analysts are projecting profit of $8.71 per share, a rise of 68.5% from last year.

Past Earnings Performance: The company missed estimates last quarter after beating forecasts in the prior two. In the third quarter, the company reported net income of $2.20 per share versus a mean estimate of profit of $2.25 per share. In the second quarter, the company beat estimates by 40 cents.

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Wall St. Revenue Expectations: On average, analysts predict $4.71 billion in revenue this quarter, a rise of 13.8% from the year ago quarter. Analysts are forecasting total revenue of $17.87 billion for the year, a rise of 35.1% from last year’s revenue of $13.23 billion.

Analyst Ratings: Analysts are bullish on this stock with eight analysts rating it as a buy, none rating it as a sell and four rating it as a hold.

A Look Back: In the third quarter, profit rose 59.7% to $452 million ($2.35 a share) from $283 million ($1.44 a share) the year earlier, but fell short analyst expectations. Revenue rose 36% to $4.63 billion from $3.4 billion.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 39.5%, with the biggest boost coming in the first quarter when revenue rose 55.8% from the year earlier quarter.

The company has seen net income rise in three straight quarters. Net income rose more than twofold in the second quarter and more than twofold in the first quarter.

Competitors to Watch: Caterpillar Inc. (NYSE:CAT), Brunswick Corporation (NYSE:BC), Navistar Intl. Corp. (NYSE:NAV), Briggs & Stratton Corp. (NYSE:BGG), China Yuchai Intl. Ltd. (NYSE:CYD), PACCAR Inc (NASDAQ:PCAR), BorgWarner Inc. (NYSE:BWA), REGAL-BELOIT CORPORATION (NYSE:RBC), and Generac Holdings Inc. (NYSE:GNRC).

Stock Price Performance: During December 28, 2011 to January 27, 2012, the stock price had risen $18.65 (21.2%) from $87.85 to $106.50. The stock price saw one of its best stretches over the last year between March 22, 2011 and April 1, 2011 when shares rose for nine-straight days, rising 9.4% (+$9.49) over that span. It saw one of its worst periods between November 14, 2011 and November 25, 2011 when shares fell for nine-straight days, falling 13.1% (-$12.96) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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