Engine manufacturer Cummins (NYSE: CMI) will be announcing earnings results tomorrow before market open. Here’s what you need to know.
Cummins beat analysts’ revenue expectations by 4.7% last quarter, reporting revenues of $8.45 billion, down 1.1% year on year. It was a stunning quarter for the company, with an impressive beat of analysts’ adjusted operating income 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 3.3% year on year to $8.13 billion, a deceleration from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $4.92 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 3.5% on average.
Looking at Cummins’s peers in the heavy transportation equipment segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Shyft delivered year-on-year revenue growth of 3.4%, beating analysts’ expectations by 2.8%, and Federal Signal reported revenues up 9.2%, topping estimates by 1%. Shyft traded up 18.1% following the results while Federal Signal was also up 11.4%.
Read our full analysis of Shyft’s results here and Federal Signal’s results here.
There has been positive sentiment among investors in the heavy transportation equipment segment, with share prices up 13% on average over the last month. Cummins is up 9.8% during the same time and is heading into earnings with an average analyst price target of $342.60 (compared to the current share price of $302.75).
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