Cummins, Inc. Third Quarter Earnings on Deck

S&P 500 (NYSE:SPY) component Cummins, Inc. (NYSE:CMI) will unveil its latest earnings on Tuesday, October 25, 2011. 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 $2.25 per share, a rise of 69.2% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $2.07. Between one and three months ago, the average estimate moved up. It has dropped from $2.27 during the last month. Analysts are projecting profit to rise by 71.8% versus last year to $8.88.

Past Earnings Performance: Last quarter, the company reported profit of $2.41 per share versus a mean estimate of net income of. The company has beaten estimates for the past three quarters.

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Wall St. Revenue Expectations: On average, analysts predict $4.61 billion in revenue this quarter, a rise of 35.6% from the year ago quarter. Analysts are forecasting total revenue of $18.08 billion for the year, a rise of 36.7% from last year’s revenue of $13.23 billion.

Analyst Ratings: eight out of 13 analysts surveyed (61.5%) have a buy rating on Cummins.. This is below the mean analyst rating of 10 competitors, which average 64.3% buy ratings.

A Look Back: In the second quarter, profit rose more than twofold to $505 million ($2.60 a share) from $246 million ($1.25 a share) the year earlier, exceeding analyst expectations. Revenue rose 44.7% to $4.64 billion from $3.21 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 39.2%, 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 first quarter and 34.1% in the fourth quarter of the last fiscal year.

Competitors to Watch: Caterpillar Inc. (NYSE:CAT), Brunswick Corporation (NYSE:BC), Navistar Intl. Corp. (NYSE:NAV), Briggs & Stratton Corp. (NYSE:BGG), AB Volvo (VOLVY), 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 July 26, 2011 to October 19, 2011, the stock price had fallen $19.85 (-18%) from $110.34 to $90.49. 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% (+$9.53) over that span. It saw one of its worst periods between September 15, 2011 and September 22, 2011 when shares fell for six-straight days, falling 12.9% (-$12.60) over that span. Shares are down $18.52 (-17%) year to date.

(Source: Xignite Financials)

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