Engine manufacturer Cummins (NYSE:CMI) will be reporting earnings tomorrow before market open. Here’s what to expect.
Cummins beat analysts’ revenue expectations by 2.3% last quarter, reporting revenues of $8.46 billion, flat year on year. It was a stunning quarter for the company, with a solid beat of analysts’ EBITDA estimates.
Is Cummins a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Cummins’s revenue to decline 5.6% year on year to $8.07 billion, a reversal from the 9.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $4.68 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Cummins has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 3.9% on average.
Looking at Cummins’s peers in the heavy transportation equipment segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Greenbrier delivered year-on-year revenue growth of 8.3%, beating analysts’ expectations by 3.1%, and Oshkosh reported revenues up 6.3%, topping estimates by 8.6%. Greenbrier traded up 3.7% following the results while Oshkosh was also up 21.6%.
Read our full analysis of Greenbrier’s results here and Oshkosh’s results here.
Investors in the heavy transportation equipment segment have had steady hands going into earnings, with share prices flat over the last month. Cummins is down 3.6% during the same time and is heading into earnings with an average analyst price target of $381.53 (compared to the current share price of $350).
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