- Cummins’ net sales for Q4 were $8.54 billion, a 9.9% increase year on year, beating the estimated $8.09 billion.
- The company’s total engine sales were $2.78 billion, a 5.3% increase year on year, surpassing the estimated $2.6 billion.
- Total components sales were $3.19 billion, a 3.1% increase year on year, exceeding the estimated $3.04 billion.
- Total Power Systems sales stood at $1.43 billion, an 8.2% increase year on year, beating the estimated $1.37 billion.
- Total Distribution sales were $2.71 billion, a 17% increase year on year, surpassing the estimated $2.62 billion.
- However, Ebitda recorded a loss of $878 million compared to the profit of $1.11 billion year on year, falling short of the estimated profit of $1.2 billion.
- Full year 2024 revenues are expected to decline between 2% and 5%.
- The company’s EBITDA is expected to range between 14.4% and 15.4% of sales.
- The total investment by the partners for the 21-gigawatt hour (GWh) factory is expected to be in the range of $2-3 billion.
- Production at the new factory is expected to begin in 2027.
- The company anticipates a slowdown in demand in 2024, particularly in the North America heavy-duty truck market, but expects to offset it by strength in other key markets.
- Cummins has already taken actions to reduce costs in anticipation of the slowdown.
- There are currently 9 buys, 13 holds, and 2 sells on the company’s stock.
Cummins Inc on Smartkarma
Analysts on Smartkarma are closely following the performance of Cummins Inc., a leading provider of power solutions for commercial vehicles. According to Baptista Research, Cummins delivered a mixed result in the recent quarter, with revenues surpassing market expectations but falling short of the analyst consensus in terms of earnings. However, the company reported strong demand across key markets and regions, with revenues reaching $8.4 billion, a 15% increase from the previous year. The acquisition of two Faurecia commercial vehicle manufacturing plants was also successfully concluded in the quarter, signaling a positive outlook for the company’s growth.
In another report by Baptista Research, it is noted that Cummins Inc. has been experiencing high demand for its products. While the company’s organic sales growth rate was 12% in the recent quarter, the inclusion of Meritor in its sales figures resulted in a 19% increase. This growth was driven by strong end-market demand and increased pricing for Cummins’ goods globally. With this positive momentum, the company’s revenue has seen a significant rise. Overall, analysts on Smartkarma remain bullish on Cummins Inc.’s future prospects.
A look at Cummins Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.4 |
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
According to the Smartkarma Smart Scores, the long-term outlook for Cummins Inc is looking positive. The company has received an overall score of 3 out of 5, which indicates a satisfactory outlook. Cummins Inc is a company that designs, manufactures, distributes, and services diesel and natural gas engines. They also produce electric power generation systems and engine-related components, such as filtration and exhaust aftertreatment.
Based on the individual scores, Cummins Inc received a score of 4 for growth and momentum, which suggests that the company is performing well in terms of its expansion and market performance. It also received a score of 3 for value, dividend, and resilience, indicating that the company is stable and offers decent value and dividends to its investors. Overall, Cummins Inc seems to be a solid company with a positive long-term outlook, making it an attractive option for investors looking for stability and growth potential.
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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