Cummins Earnings Preview: Analysts Expect Higher EPS, Revenue

Cummins (CMI) reports its latest earnings on Tuesday, October 25, 2011. Get prepared with Benzinga's ultimate preview for Cummins' third quarter earnings.

Earnings and Revenue:

Analysts are predicting an EPS reading of $2.25/share and revenues of $4.61 billion. Cummins' latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a profit of $1.33/share on revenues of $3.4 billion. We'll have to wait for Tuesday to see if Cummins falls in line with analyst expectations and reports an estimated increase in both EPS and revenue from the year-ago quarter.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance:

At last check, shares of Cummins were trading at $90.49. Since January 1st, shares of Cummins have declined 17%. For a full 12 months, the return has risen by 2.6%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

• Long-term shareholders are already enjoying 12-month gains prior to the announcement

Average Stock Rating:

The average rating by analysts for Cummins is a Moderate Buy. Over the past three months this rating's strength has declined slightly.

Competitors:

Wondering how Cummins compares to rivals in the same sector? Here are a few of the company's peers.

• Brunswick (NYSE: BC): Moderate Buy with a $0.73 recent quarter EPS
• Briggs & Stratton (NYSE: BGG): Hold with a $0.32 recent quarter EPS
• BorgWarner (NYSE: BWA): Moderate Buy with a $1.12 recent quarter EPS
• Caterpillar (NYSE: CAT): Moderate Buy with a $1.72 recent quarter EPS

The engines company's industry has seen price/earnings growth of 0.1% during the current fiscal year.

Finally, a description of the company's main areas of operation: 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.

Take Action:

There is your peek into Cummins' upcoming earnings numbers, including some competitors to watch around the time of the announcement. Check back in with us after the announcement for a full recap. In the meantime, here are some links to explore today.

• To see up-to-date news on Cummins, click here
• To see other trading ideas, click here
• To see other company earnings recaps, click here