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Columbus, Indiana-based Cummins Inc. (CMI) designs, manufactures, distributes, and services diesel and natural gas engines, electric and hybrid powertrains, and related components worldwide. Valued at $39.52 billion by market cap, the company offers products to original equipment manufacturers (OEMs), distributors, and dealers through a network of company-owned and independent distributor facilities. The global power solutions leader is expected to announce its fiscal second-quarter earnings for 2024 before the market opens on Thursday, Aug. 1.
Ahead of the event, analysts expect CMI to report a profit of $4.85 per share on a diluted basis, down 6.4% from $5.18 per share in the year-ago quarter. The company missed the consensus estimates in three of the last four quarters while beating the forecast on another occasion. In the previous quarter, CMI’s completed the divestiture of its remaining 80.5% ownership of Atmus common stock.
For the full year, analysts expect CMI to report EPS of $18.73, down 4.9% from $19.69 in fiscal 2023.
CMI stock has outperformed the S&P 500’s ($SPX) 18.3% gains on a YTD basis, with shares up 22.8% during this period. Similarly, it outshined the S&P 500 Industrial Sector SPDR’s (XLI) 11.4% gains over the same time frame.
On May 2, CMI reported its Q1 results. Its adjusted EPS of $5.10 missed Wall Street expectations of $5.11. The company posted a revenue of $8.40 billion, beating the consensus estimates of $8.36 billion. It expects full-year revenues to decline 2% to 5% on a year-over-year basis and forecasts EBITDA to be between 14.5% and 15.5% of sales, up from the prior guidance of between 14.4% and 15.4%. CMI shares closed down more than 1% on the day the results were released but have been on an uptrend since then.
Analysts’ consensus opinion on CMI stock is neutral, with a “Hold” rating overall. Out of 16 analysts covering the stock, three advise a “Strong Buy” rating, one suggests a “Moderate Buy” rating, 10 give a “Hold” rating, one suggests a “Moderate Sell” rating, and one recommends a “Strong Sell.” The average analyst price target for CMI is $300.29, indicating a potential upside of 3.9% from the current levels.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
