- Cummins’ net sales for the first quarter were $8.17 billion, closely aligning with the estimate of $8.16 billion, but showing a slight decline of 2.7% compared to the previous year.
- Engine sales totaled $2.77 billion, a decrease of 5.4% year-over-year, slightly surpassing the estimate of $2.73 billion.
- Components sales saw a significant drop, reaching $2.67 billion, down 20% from the previous year, missing the estimated $2.93 billion.
- Power Systems sales increased by 19% to $1.65 billion, exceeding the estimate of $1.54 billion.
- Distribution sales experienced a robust growth of 15%, totaling $2.91 billion and surpassing the estimate of $2.7 billion.
- Accelera sales rose by 11% to $103 million, slightly above the estimate of $102.4 million.
- Earnings per Share (EPS) were reported at $5.96, significantly down from $14.03 the previous year, but above the estimate of $4.86.
- EBITDA fell by 43% year-over-year to $1.46 billion.
- Analyst recommendations for Cummins include 8 buys, 13 holds, and 2 sells.
Cummins Inc on Smartkarma
Analyst coverage of Cummins Inc on Smartkarma indicates positive sentiment towards the company’s performance and strategic initiatives. Baptista Research‘s report titled “Cummins’ Efforts Towards Margin Expansion Paying Off? A Strategic Cost-Slaying Masterplan In Progress!” highlights the company’s record highs in revenues, EBITDA, and earnings per share for the fiscal year 2024. Despite facing tough industrial conditions, Cummins shows resilience with solid financial footing and growth initiatives.
In another report by Baptista Research, “Cummins Inc.: An Analysis Of Its Natural Gas Engine Market Penetration & Other Major Drivers,” the analysis focuses on the company’s third-quarter 2024 results. Cummins reported stable sales figures of $8.5 billion, with challenges in the North American market offset by strong demand in medium-duty trucks and power generation sectors. Overall, the analysis suggests a balanced view of Cummins Inc‘s performance and strategic direction.
A look at Cummins Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores analysis, Cummins Inc. has a mixed long-term outlook across key factors. With a score of 2 for Value, the company may not be considered undervalued, but it still maintains potential for growth with a score of 4 in that category. Additionally, Cummins Inc. shows resilience with a score of 3, indicating a moderate ability to weather economic challenges. The company’s dividend score of 3 suggests a stable payout to investors, and its momentum score of 3 hints at steady performance in the market.
Cummins Inc. operates in designing, manufacturing, distributing, and servicing diesel and natural gas engines, as well as other engine-related components. With a focus on electric power generation systems and filtration products, the company maintains a diversified portfolio in the industry. Investors looking at Cummins Inc. should consider its growth potential and product resilience as key factors in their long-term investment strategies.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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