Uncovering Potential: Cummins's Earnings Preview

Cummins CMI is preparing to release its quarterly earnings on Monday, 2025-05-05. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Cummins to report an earnings per share (EPS) of $4.94.

The announcement from Cummins is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Historical Earnings Performance

During the last quarter, the company reported an EPS beat by $0.47, leading to a 1.76% increase in the share price on the subsequent day.

Here's a look at Cummins's past performance and the resulting price change:

Cummins Share Price Analysis

Shares of Cummins were trading at $294.88 as of May 01. Over the last 52-week period, shares are up 6.05%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analysts' Take on Cummins

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Cummins.

Analysts have provided Cummins with 12 ratings, resulting in a consensus rating of Neutral. The average one-year price target stands at $352.92, suggesting a potential 19.68% upside.

Peer Ratings Overview

The following analysis focuses on the analyst ratings and average 1-year price targets of PACCAR, Westinghouse Air Brake and Allison Transmission, three prominent industry players, providing insights into their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for PACCAR, with an average 1-year price target of $106.5, suggesting a potential 63.88% downside.
• Analysts currently favor an Neutral trajectory for Westinghouse Air Brake, with an average 1-year price target of $200.0, suggesting a potential 32.18% downside.
• Analysts currently favor an Neutral trajectory for Allison Transmission, with an average 1-year price target of $103.75, suggesting a potential 64.82% downside.

Insights: Peer Analysis

In the peer analysis summary, key metrics for PACCAR, Westinghouse Air Brake and Allison Transmission are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

Key Takeaway:

Cummins ranks in the middle among its peers for revenue growth, with one peer showing negative growth. In terms of gross profit, Cummins is at the top compared to its peers. For return on equity, Cummins is also at the top, with one peer having a significantly lower return. Overall, Cummins is positioned well compared to its peers in terms of financial performance metrics.

About Cummins

Cummins is a leading manufacturer of diesel and other engines used in heavy- and medium-duty commercial trucks, off-highway equipment, and locomotives, in addition to prime power and standby generators. The company also sells powertrain components, which include filtration products, transmissions, turbochargers, aftertreatment systems, and fuel systems. Sales are approximately 60% US and Canada and 40% rest of world. Much of Cummins' foreign sales (China, India, and so forth) are through joint ventures. The company operates 650 distributors and over 19,000 dealer locations across 190 countries. Cummins' business model is unique as it competes with many of its heavy-duty truck manufacturer customers, who also make their own engines.

Cummins's Financial Performance

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

Revenue Growth: Cummins's revenue growth over a period of 3 months has faced challenges. As of 31 December, 2024, the company experienced a revenue decline of approximately -1.12%. This indicates a decrease in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Industrials sector.

Net Margin: Cummins's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 4.95%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 4.06%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Cummins's ROA excels beyond industry benchmarks, reaching 1.31%. This signifies efficient management of assets and strong financial health.

Debt Management: Cummins's debt-to-equity ratio is below the industry average at 0.74, reflecting a lower dependency on debt financing and a more conservative financial approach.

To track all earnings releases for Cummins visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.