- Net Sales: Cummins reported net sales of $8.80 billion, beating the estimate of $8.32 billion and marking a 1.8% increase year-over-year (y/y).
- Engine Sales: Total engine sales were $3.15 billion, up 5.5% y/y, surpassing the estimate of $2.88 billion.
- Components Sales: Total components sales came in at $2.98 billion, a decrease of 13% y/y, but slightly above the estimate of $2.94 billion.
- Power Systems Sales: Sales in the power systems segment totaled $1.59 billion, a 9.1% increase y/y, exceeding the forecast of $1.5 billion.
- Distribution Sales: Total distribution sales reached $2.83 billion, up 9% y/y, beating the estimate of $2.68 billion.
- Earnings Per Share (EPS): EPS was $5.26, compared to $5.05 y/y.
- EBITDA: Cummins reported an EBITDA of $1.35 billion, a 3.1% increase y/y, surpassing the estimate of $1.26 billion.
- Outlook: Cummins has raised its expectations for revenue and profitability for 2024, citing continued demand for their products and services.
- Future Investments: Despite a lower outlook for the second half, Cummins plans to continue investing in future growth, new technologies, and returning cash to shareholders.
- Analyst Ratings: The stock is rated as 7 buys, 12 holds, and 4 sells.
Cummins Inc on Smartkarma
Analysts on Smartkarma are bullish on Cummins Inc. Recent reports from Value Investors Club and Baptista Research provide insights into the company’s performance and future outlook.
Value Investors Club highlights an oddlot exchange offer by Cummins with a high pre-tax gain per account. Participants are required to buy 99 shares of CMI and tender all shares by March 13th to receive shares of ATMU in exchange. Baptista Research‘s analysis focuses on Cummins’ Q1 2024 financial results, showing a marginal decrease in revenues but a significant increase in EBITDA compared to the previous year. The company’s strong performance in clean energy technology and innovation, as detailed in another report by Baptista Research, drove revenue growth in the fourth quarter of 2023.
A look at Cummins Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts reviewing Cummins Inc.’s Smart Scores have provided insights into the company’s long-term outlook based on various factors. With a Value score of 2, Cummins Inc. indicates a moderate value proposition. The Dividend, Growth, Resilience, and Momentum scores all sit at a balanced 3. This suggests that the company offers a consistent dividend payout, average growth potential, strong resilience in challenging conditions, and a steady momentum in the market.
Cummins Inc. operates in the design, manufacturing, distribution, and servicing of diesel and natural gas engines, along with electric power generation systems. The company also produces a range of engine-related components like filtration systems, exhaust aftertreatment solutions, fuel systems, controls, and air handling systems. Overall, analysts recognize Cummins Inc.’s noteworthy position in the market, supported by its diversified product offerings and stable performance across key factors assessed by the Smart Scores.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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