- Cummins reported net sales of $8.45 billion for the fourth quarter, surpassing the estimate of $8.12 billion but showing a year-over-year decrease of 1.1%.
- Total Engine sales amounted to $2.72 billion, exceeding the estimate of $2.65 billion, despite a year-over-year decline of 2.1%.
- Total Components sales were $2.64 billion, showing a significant decrease of 17% from last year but slightly above the estimate of $2.61 billion.
- Total Power Systems sales surged by 22% year-over-year to $1.74 billion, significantly outperforming the estimate of $1.58 billion.
- Total Distribution sales increased by 13% year-over-year to $3.07 billion, higher than the expected $2.94 billion.
- Total Accelera sales grew by 23% year-over-year to $100 million, although they fell short of the estimate of $111.1 million.
- EPS (Earnings Per Share) improved to $3.02 from a loss of $10.01 per share in the previous year, but was below the estimate of $4.62.
- EBITDA reached $1.02 billion, recovering from a previous loss of $878 million but below the estimate of $1.23 billion.
- Cummins forecasts 2025 revenues to range from a decrease of 2% to an increase of 3%, with EBITDA expected to be between 16.2% and 17.2% of sales.
- The company is conducting a strategic review to streamline operations and focus investments, acknowledging a slowdown in the adoption of certain zero-emissions solutions in some regions.
- In 2025, Cummins anticipates slightly weaker demand in North American on-highway truck markets, especially in the first half of the year, but expects this to be balanced by strength in other markets.
- Despite expecting relatively flat revenue and challenges in key North American markets, Cummins aims to improve profitability and cash flow.
- Analyst recommendations include 8 buys, 13 holds, and 2 sells for Cummins’ shares.
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Cummins Inc on Smartkarma
Analysts covering Cummins Inc on Smartkarma, such as Baptista Research, have provided valuable insights into the company’s recent performance and strategic positioning. In their report titled “Cummins Inc.: An Analysis Of Its Natural Gas Engine Market Penetration & Other Major Drivers,” Baptista Research highlighted the stable sales figure of $8.5 billion in the third quarter of 2024. Despite challenges in the North American market, including a slight decline in heavy-duty truck sales, Cummins Inc saw strong demand in medium-duty trucks and power generation sectors.
Furthermore, Baptista Research‘s report “Cummins Inc.: Strategic Positioning in the Aftermarket and Distribution Business & Other Major Drivers” delved into the company’s second quarter earnings for 2024. Despite facing a mixed performance landscape, Cummins Inc reported a 2% increase in sales to $8.8 billion compared to the same period in 2023. This growth was driven by sustained high demand and improved pricing strategies, showcasing the company’s resilience in navigating a challenging economic environment and market volatility.
A look at Cummins Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 4 | |
| 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, Cummins Inc‘s overall outlook appears positive for the long term. With a strong momentum score of 4, indicating positive market sentiment and price performance, Cummins is positioned well for potential growth. Its resilience, growth, and dividend scores of 3 signify a balanced approach to managing risks and rewards while maintaining a steady pace of expansion and rewarding shareholders. However, with a value score of 2, Cummins may currently be trading at a higher valuation compared to its intrinsic worth, which investors should consider when making investment decisions.
Cummins Inc, a company that specializes in designing, manufacturing, and servicing diesel and natural gas engines, along with electric power generation systems and related components, shows promising signs for future performance based on the Smartkarma Smart Scores. Although there are areas for improvement, particularly in terms of value, the company’s strong momentum, growth, resilience, and dividend scores highlight its overall positive outlook in the market. Investors looking for a mix of stability and growth potential may find Cummins Inc an attractive long-term investment option.
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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