Skip to content

In Business.ae

Menu
  • Home
  • News
  • Business
  • Finance
  • Technology
  • Weather
  • General
Menu

Cummins (CMI) Beats Q3 Earnings Estimates, Revises View

Posted on October 7, 2021October 9, 2021 by Curtis Johnson
Finance

Cummins (CMI) Beats Q3 Earnings Estimates, Revises View

November 1, 2016 by inbusiness
0 0 0 0

Cummins Inc.’s CMI adjusted earnings per share decreased 5.6% to $2.02 in the third quarter of 2016 from $2.14 earned in the year-ago quarter. The bottom line, however, surpassed the Zacks Consensus Estimate of $1.93. Including the impact of one-time items, net income fell to $289 million from $380 million in the third quarter of 2015.

Revenues declined 9% year over year to $4.19 billion in the reported quarter. Moreover, the figure missed the Zacks Consensus Estimate of $4.26 billion. The year-over-year decline was due to lower truck production in North America and weak international demand for power generation equipment.

Operating income decreased significantly to $384 million from $557 million a year ago. Earnings before interest and taxes (“EBIT”) dropped to $398 million (9.5% of sales) from $577 million (12.5% of sales) a year ago.

 

FindTheCompany | Graphiq

Segment Performance

Share your article

Sales in the Engine segment fell 12% to $1.9 billion due to a 13% decline in on-highway revenues, resulting from weaker heavy and medium-duty truck production in North America. The segment’s EBIT decreased to $89 million (4.8% of sales) from $217 million (10.3% of sales) a year ago.

Sales at the Components segment fell 8% to $1.1 billion owing to lower sales in North America, attributable to lower medium and heavy-duty truck production, partially offset by higher revenues in China. This segment’s EBIT declined to $148 million (12.9% of sales) from $156 million (12.6% of sales) in the prior-year quarter.

Sales at the Power Systems segment fell 13% to $856 million due to a drop in demand for power generation equipment and industrial engines in Asia, the Middle East and Africa. The segment’s EBIT declined to $59 million (6.9% of sales) in third-quarter 2016 from $74 million (7.5% of sales) in third-quarter 2015.

Sales at the Distribution segment dropped 3% to $1.5 billion. Revenues benefited from the company’s acquisitions undertaken. However, this gain was offset by adverse currency movements and lower organic sales. The segment’s EBIT fell to $96 million (6.4% of sales) from $123 million (7.9% of sales) a year ago.

Financial Position

Cummins’ cash and cash equivalents decreased to $1.25 billion as of Oct 2, 2016, from $1.71 billion as of Dec 31, 2015. Long-term debt totaled $1.63 billion as of Oct 2, 2016, compared with $1.62 billion as of Dec 31, 2015.

In the first nine months of 2016, Cummins’ net operating cash flow increased to $1.31 billion from $1.13 billion in the same period a year ago. Capital expenditures decreased to $312 million from $393 million in the prior-year period.

Capital Deployment

Cummins is focused on enhancing shareholder value by pursuing aggressive share repurchases and increasing dividend payouts. The company returned $1.3 billion to shareholders in the first nine months of 2016 through dividends and share repurchases. This is consistent with Cummins’ plans to return 75% of its full-year operating cash flow to shareholders.

2016 Guidance

For 2016, Cummins expects its revenue to decline 9%, consistent with its prior guidance of a decline of 8%−10%. The EBIT guidance was reduced to 11.3% from the prior range of 11.6%–12.2% due to an increase in the expected costs of a loss contingency in the third quarter.

CUMMINS INC Price, Consensus and EPS Surprise

 

CUMMINS INC Price, Consensus and EPS Surprise | CUMMINS INC Quote

AXIR Consulting

Zacks Rank

Currently, Cummins carries a Zacks Rank #2 (Buy).

Some other well-ranked stocks in the auto space include Spartan Motors Inc. SPAR, Gentex Corp. GNTX and Standard Motor Products Inc. SMP.

Standard Motor has a long-term expected growth rate of 15%, better than the industry average of 12.30%. It sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Spartan Motors, carrying a Zacks Rank #2, has a long-term expected growth rate of 15%, compared to the industry average of 12%.

Gentex, also a Zacks Rank #2 stock, has a long-term expected growth rate of 11.20%.

Confidential from Zacks

Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report GENTEX CORP (GNTX): Free Stock Analysis Report SPARTAN MOTORS (SPAR): Free Stock Analysis Report STANDARD MOTOR (SMP): Free Stock Analysis Report CUMMINS INC (CMI): Free Stock Analysis Report To read this article on Zacks.com click here. 

Read More

Related posts:




–
November 1, 2016

America Movil (AMX) Lags Earnings, Tops Revenues in Q3




–
November 1, 2016

Grupo Televisa (TV) Q3 Earnings Lag, Revenues Improve Y/Y




–
November 1, 2016

Dominion (D) Tops on Q3 Earnings & Revenues; Keeps View




–
November 1, 2016

Affiliated Managers (AMG) Q3 Earnings Beat on Lower Costs




–
November 1, 2016

TOTAL (TOT) Misses Q3 Earnings Estimates; Revenues Beat




–
November 1, 2016

Gambling Stock Roundup: Focus on Q3 Earnings, Nevada Revenues Rise…




–
November 1, 2016

Lions Gate Entertainment (LGF): What’s Up for Q2 Earnings?




–
November 1, 2016

Fujifilm (FUJIY) Q2 Earnings Improve, Revenues Decline Y/Y




–
November 1, 2016

Telefonica (TEF) Beats Earnings & Revenues Estimates in Q3




–
November 1, 2016

Methanex (MEOH) Q3 Loss Lower than Expected, Sales Beat




–
November 1, 2016

Loews (L) Q3 Earnings Beat Estimates, Revenues Rise Y/Y




–
November 1, 2016

CDW Corp. (CDW) Q3 Earnings: Will it Pull Off a…




–
November 1, 2016

LyondellBasell (LYB) Beats on Q3 Earnings and Revenues




–
November 1, 2016

Cooper Tire (CTB) Beats on Q3 Earnings, Misses Revenues




–
November 1, 2016

Iron Mountain (IRM) Lags Q3 FFO Estimates, Cuts Guidance




–
November 1, 2016

Fidelity (FIS) Beats on Q3 Earnings, Misses Sales Estimates




–
November 1, 2016

Pitney Bowes (PBI) Misses Q4 Earnings, Reiterates Guidance




–
November 1, 2016

Mosaic (MOS) Tops Q3 Earnings and Revenue Estimates




–
November 1, 2016

Armstrong World (AWI) Q3 Earnings in Line, Revenues Beat




–
November 1, 2016

Agnico Eagle (AEM) Beats Q3 Earnings, Sales Estimates




–
November 1, 2016

Kellogg (K) Beats on Q3 Earnings, Lifts Earnings Guidance




–
November 1, 2016

Diamond Offshore’s (DO) Q3 Earnings Beat, Revenues Miss




–
November 1, 2016

Tesoro Corporation (TSO) Q3 Earnings Beat; Revenues Miss




–
November 1, 2016

Regency Centers’ (REG) Q3 FFO in Line, Revenues Surpass




–
November 1, 2016

Vulcan Materials (VMC) Misses on Earnings & Revenues in Q3




–
November 1, 2016

Cincinnati Bell (CBB) Beats Q3 Earnings, Keeps 2016 View




–
November 1, 2016

j2 Global (JCOM) Q3 Earnings Beat Estimates; Dividend Up




–
November 1, 2016

CNOOC’s (CEO) Q3 Revenues Decline Y/Y on Lower Oil Price




–
November 1, 2016

Spectra Energy (SE) Earnings Beat, Revenues Miss in Q3




–
November 1, 2016

RenaissanceRe (RNR) Q3 Earnings, Revenues Lag Estimates




–
November 1, 2016

CNO Financial (CNO) Q3 Earnings, Revenues Top; Rise Y/Y




–
November 1, 2016

Host Hotels (HST) Q3 FFO Beats, Rate & Occupancy Improve




–
November 1, 2016

Tenneco’s (TEN) Q3 Earnings Beat Estimates, Revenues Lag




–
November 1, 2016

S&P Global (SPGI) Q3 Earnings & Revenues Beat Estimates




–
November 1, 2016

Avon (AVP) Q3 Earnings Miss, Updates Transformation Plan




–
November 1, 2016

Fitbit (FIT) Q3 Earnings Beat, Revenues Match Estimates




–
November 1, 2016

Wynn Resorts (WYNN) Q3 Earnings, Revenues Lag; Stock Hit




–
November 1, 2016

Jones Lang LaSalle (JLL) Q3 Earnings Lag, Fall Y/Y; Sales…




–
November 1, 2016

Red Robin (RRGB) Q3 Earnings Meet Estimates, Sales Top

0 0 0 0

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recent Posts

  • Researchers to explore ‘hidden secrets’ under Qatar’s waters
  • 7 apps to help your business grow on Facebook
  • Money & Me: Co-founder of UAE-based online marketplace strives for a fine balance
  • Espagne : Timoteo Mendieta FR
  • Ukraine exhibition explores our "fragile state"

Categories

  • Bankruptcy
  • Black Dress
  • Business
  • Finance
  • General
  • News
  • Technology
  • Weather
© 2022 In Business.ae | Powered by Superbs Personal Blog theme