UPDATE: Cummins Posts Upbeat Q4 Earnings, Issues Weak Revenue Forecast

Shares of

dropped more than 3% in pre-market trading after the company issued a weak revenue guidance for 2015. However, the company reported upbeat earnings for the fourth quarter. For 2015, Cummins now projects revenue full-year revenue of $19.61 billion to $20 billion, versus its earlier outlook of $20 billion to $23 billion. Analysts expected revenue of $20.96 billion. The Columbus, Indiana-based company posted quarterly earnings of $444 million, or $2.44 per share, compared to $432 million, or $2.32 per share, in the year-ago period. Excluding items, Cummins earned $2.56 per share. Its revenue climbed 11% to $5.09 billion. However, analysts were expecting earnings of $2.50 per share on revenue of $5.02 billion. Its international sales rose 2%, while sales in the North American market climbed 20%. Engine sales climbed 11% to $2.8 billion, while components sales gained 16% to $1.3 billion. "We reported record revenues in 2014 despite weak economic conditions in several of our most important international markets," said Chairman and CEO Tom Linebarger. "Revenues grew 11 percent as demand in on-highway markets in North America improved, we continued executing our distributor acquisition strategy, and we delivered strong growth in China driven by new products. We continued to invest in future growth, reflecting our commitment to technology and product leadership, while growing EBIT faster than sales." Cummins shares fell 3.58% to $139.00 in pre-market trading.