Engine manufacturer Cummins (NYSE:CMI) will be reporting results tomorrow morning. Here’s what you need to know.
Cummins beat analysts’ revenue expectations by 5.3% last quarter, reporting revenues of $8.80 billion, up 1.8% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EBITDA estimates.
Is Cummins a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Cummins’s revenue to decline 1.4% year on year to $8.31 billion, a reversal from the 15% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $4.81 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Cummins has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 3.9% on average.
Looking at Cummins’s peers in the heavy transportation equipment segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Allison Transmission delivered year-on-year revenue growth of 12%, beating analysts’ expectations by 4.3%, and PACCAR reported a revenue decline of 6.4%, topping estimates by 1.4%. Allison Transmission traded up 8% following the results while PACCAR was down 5.3%.
Read our full analysis of Allison Transmission’s results here and PACCAR’s results here.
Investors in the heavy transportation equipment segment have had steady hands going into earnings, with share prices flat over the last month. Cummins is down 1.1% during the same time and is heading into earnings with an average analyst price target of $331.43 (compared to the current share price of $328.11).
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