- Cummins’ net sales for the second quarter reached $8.64 billion, surpassing estimates of $8.46 billion, despite a slight year-over-year decline of 1.7%.
- Engine sales totaled $2.90 billion, down 8% from the previous year but slightly above the estimated $2.83 billion.
- Components sales came in at $2.71 billion, declining 9.3% year-over-year and slightly below the estimate of $2.73 billion.
- Power Systems sales saw a significant increase, reaching $1.89 billion, up 19% from last year and exceeding expectations of $1.72 billion.
- Distribution sales were $3.04 billion, showing a 7.5% increase from the previous year, beating the estimate of $2.97 billion.
- Accelera sales were $105 million, down 5.4% year-over-year, coming in under the estimate of $115.4 million.
- Earnings per share (EPS) were $6.43, significantly higher than both the prior year’s $5.26 and the estimate of $5.14.
- Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) stood at $1.59 billion, reflecting an 18% increase year-over-year.
- Analyst recommendations include 8 buys, 13 holds, and 2 sells.
Cummins Inc on Smartkarma
Analysts on Smartkarma, such as Baptista Research, are keeping a close eye on Cummins Inc. and sharing valuable insights. In one recent report titled “Cummins Inc.: An Insight Into Its Critical Growth Levers & Tariff Mitigation Strategies To Handle Geopolitical Uncertainties!” the analysts discuss the company’s first-quarter results for 2025. Despite facing challenges like trade tariffs and regulatory uncertainties, Cummins showcased strength, especially in its Power Systems segment, achieving record-breaking performance.
Another report by Baptista Research, “Cummins’ Efforts Towards Margin Expansion Paying Off? A Strategic Cost-Slaying Masterplan In Progress!” highlights Cummins Inc.’s performance throughout fiscal year 2024. Despite facing industrial challenges and strategic changes, Cummins demonstrated resilience with strong financials and growth initiatives. The company achieved remarkable milestones in revenues, EBITDA, and earnings per share, showing progress towards margin expansion and cost-efficiency.
A look at Cummins Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
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, Cummins Inc seems to have a positive long-term outlook. With a Growth score of 4 and a Momentum score of 4, the company appears to be on a path of expansion and positive market performance. This suggests that Cummins Inc is experiencing growth opportunities and has strong momentum in the market.
While the Value score is moderate at 2, the Dividend and Resilience scores are solid at 3 each. This indicates that Cummins Inc may not be undervalued but still offers stable dividends and shows resilience in the face of market challenges. Overall, despite some areas for improvement, the company’s diverse operations in diesel and natural gas engines, as well as its focus on electric power generation systems, position it well for future success.
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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