Cummins Inc. CMI is slated to launch first-quarter 2024 results on Could 2, earlier than market open. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share (EPS) and revenues is pegged at $5.11 and $8.36 billion, respectively.
For the primary quarter, the consensus estimate for CMI’s EPS has moved up by a penny up to now 30 days. Its bottom-line estimates suggest a decline of seven.93% from the year-ago reported quantity.
The Zacks Consensus Estimate for its quarterly revenues suggests a year-over-year decline of 1.13%. Over the trailing 4 quarters, CMI surpassed earnings estimates on two events and missed twice, the common shock being 2.81%. That is depicted within the graph beneath:
Cummins Inc. Worth and EPS Shock
Cummins Inc. price-eps-surprise | Cummins Inc. Quote
This autumn Highlights
In fourth-quarter 2023, the corporate’s adjusted earnings per share of $4.14 fell from $4.52 reported within the prior-year quarter. The determine additionally missed the Zacks Consensus Estimate of $4.41.
Cummins’ revenues totaled $8.54 billion, up from $7.77 billion recorded within the year-ago quarter. The highest line beat the Zacks Consensus Estimate of $8.08 billion.
Elements to Form Q1 Outcomes
Cummins is making vital strides in inorganic progress by way of the acquisitions of Jacobs Automobile Programs, Meritor and the Siemens Business Automobiles enterprise. The buyout of Meritor has positioned CMI as a number one supplier of built-in powertrain options throughout inner combustion and electrical energy functions. The acquisition added merchandise to the corporate’s parts enterprise.
The buyout of Hydrogenic Corp., funding in Loop Power and partnership with NPROXX have expanded Cummins’ gas cell and hydrogen-processing know-how capabilities. Additionally, the acquisition of a 50% stake in Momentum Gas, a three way partnership with Rush Enterprises and alliances with Sinopec, Isuzu Motors, Werner Enterprises, Chevron and Iberdrola augur properly. Strategic acquisitions and partnerships are more likely to have bolstered the corporate’s efficiency within the to-be-reported quarter.
CMI has a rising pipeline of electrolyzer orders. In 2023, Cummins’ electrolyzer backlog totaled greater than $500 million. The rising demand for electrolyzer is more likely to have boosted the corporate’s top-line efficiency within the first quarter.
Key Predictions
Right here’s a quick take a look at the revenues and EBITDA estimates for Cummins’ segments.
For the primary quarter, our estimate for quarterly gross sales of the Engine section is pegged at $2.8 billion, suggesting a decline from $2.99 billion reported in first-quarter 2023. Our estimate for the section’s EBITDA is $389.9 million, implying a decline from $457 million recorded within the first quarter of 2023.
For the primary quarter, our estimate for gross sales from the Distribution section is $2.51 billion, indicating an increase from year-ago gross sales of $2.4 billion. Our forecast for the section’s EBITDA is $323.5 million, suggesting a fall from $335 million reported within the first quarter of 2023.
For the quarter beneath dialogue, we anticipate web gross sales from the Energy System section to be $1.42 billion, suggesting an increase from $1.34 billion recorded in first-quarter 2023. Our forecast for the section’s EBITDA is $231 million, implying an increase from $219 million generated within the first quarter of 2023.
Our projection of $3.3 billion for the Elements section’s quarterly web gross sales implies a decline from $3.56 billion reported within the first quarter of 2023. Our estimate for the section’s EBITDA is pegged at $489 million, indicating a decline from $507 million recorded in first-quarter 2023.
We anticipate quarterly gross sales from the Accelera section to be $111.7 million, indicating a rise from $85 million reported within the year-ago quarter.
Earnings Whispers
Our confirmed mannequin predicts an earnings beat for Cummins for the quarter to be reported, because it has the appropriate mixture of the 2 key components. A mixture of a optimistic Earnings ESP and a Zacks Rank #1 (Robust Purchase), 2 (Purchase) or 3 (Maintain) will increase the chances of an earnings beat. That’s the case right here, as elaborated beneath.
Earnings ESP: CMI has an Earnings ESP of +2.81%. It’s because the Most Correct Estimate is larger than the Zacks Consensus Estimate. You may uncover the very best shares to purchase or promote earlier than they’re reported with our Earnings ESP Filter.
Zacks Rank: It presently carries a Zacks Rank #3.
Earnings Whispers for Different Auto Shares
Lucid Group, Inc. LCID has an Earnings ESP of -8.00% and a Zacks Rank #3 at current. It’s scheduled to publish first-quarter 2024 earnings on Could 6. The Zacks Consensus Estimate is pegged at a lack of 25 cents per share. You may see the complete list of today’s Zacks #1 Rank stocks here.
LCID missed earnings estimates in every of the trailing 4 quarters, the common unfavourable shock being 7.96%.
Rivian Automotive, Inc. RIVN has an Earnings ESP of -1.77% and a Zacks Rank #3 at current. The corporate is slated to publish first-quarter 2024 earnings on Could 7. The Zacks Consensus Estimate is pegged at a lack of $1.13 per share.
RIVN surpassed earnings estimates in every of the trailing 4 quarters, the common shock being 13.82%.
Nikola Company NKLA has an Earnings ESP of 0.00% and a Zacks Rank #3 at current. The corporate is scheduled to publish first-quarter 2024 earnings on Could 7. The Zacks Consensus Estimate is pegged at a lack of 9 cents per share.
NKLA surpassed earnings estimates in three of the trailing 4 quarters and missed as soon as, the common unfavourable shock being 11.24%.
Keep on high of upcoming earnings bulletins with the Zacks Earnings Calendar.
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Cummins Inc. (CMI) : Free Stock Analysis Report
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