Zacks: Analysts Anticipate Cummins Inc. (CMI) Will Announce Earnings of $3.70 Per Share

Analysts predict that Cummins Inc. (NYSE:CMI) will announce earnings per share of $3.70 for the current quarter, Zacks reports. Seven analysts have made estimates for Cummins’ earnings, with the highest EPS estimate coming in at $3.90 and the lowest estimate coming in at $3.51. Cummins reported earnings per share of $2.71 during the same quarter last year, which would suggest a positive year-over-year growth rate of 36.5%. The business is expected to report its next earnings report on Tuesday, October 30th.

According to Zacks, analysts expect that Cummins will report full-year earnings of $13.27 per share for the current year, with EPS estimates ranging from $12.90 to $13.72. For the next fiscal year, analysts anticipate that the company will report earnings of $15.11 per share, with EPS estimates ranging from $14.06 to $16.50. Zacks’ earnings per share averages are a mean average based on a survey of sell-side research firms that that provide coverage for Cummins.

Cummins (NYSE:CMI) last posted its quarterly earnings results on Tuesday, July 31st. The company reported $3.32 earnings per share for the quarter, missing analysts’ consensus estimates of $3.63 by ($0.31). The business had revenue of $6.13 billion for the quarter, compared to analyst estimates of $5.81 billion. Cummins had a return on equity of 26.30% and a net margin of 4.67%. The business’s revenue was up 20.8% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $2.53 earnings per share.

A number of equities analysts recently weighed in on CMI shares. TheStreet upgraded shares of Cummins from a “c+” rating to a “b” rating in a research report on Tuesday, May 1st. Argus lowered their price target on shares of Cummins to $175.00 and set a “buy” rating on the stock in a research report on Friday, May 11th. They noted that the move was a valuation call. Standpoint Research upgraded shares of Cummins from a “hold” rating to a “buy” rating in a research report on Monday, June 18th. Zacks Investment Research upgraded shares of Cummins from a “hold” rating to a “buy” rating and set a $148.00 price target on the stock in a research report on Tuesday, July 3rd. Finally, Stifel Nicolaus raised shares of Cummins from a “hold” rating to a “buy” rating and reduced their target price for the stock from $174.00 to $160.00 in a research note on Tuesday, July 10th. Three investment analysts have rated the stock with a sell rating, seventeen have assigned a hold rating and six have issued a buy rating to the stock. The company currently has an average rating of “Hold” and an average target price of $166.95.

Cummins traded down $1.73, reaching $140.29, on Friday, according to MarketBeat.com. 876,310 shares of the company’s stock were exchanged, compared to its average volume of 1,390,803. The firm has a market capitalization of $23.40 billion, a PE ratio of 10.77, a PEG ratio of 0.82 and a beta of 1.11. Cummins has a twelve month low of $129.90 and a twelve month high of $194.18. The company has a current ratio of 1.61, a quick ratio of 1.03 and a debt-to-equity ratio of 0.19.

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 4th. Shareholders of record on Wednesday, August 22nd will be paid a dividend of $1.14 per share. The ex-dividend date is Tuesday, August 21st. This is an increase from Cummins’s previous quarterly dividend of $1.08. This represents a $4.56 dividend on an annualized basis and a yield of 3.25%. Cummins’s payout ratio is 40.68%.

In other news, VP Tracy A. Embree sold 462 shares of the business’s stock in a transaction that occurred on Monday, August 6th. The shares were sold at an average price of $141.70, for a total value of $65,465.40. Following the sale, the vice president now directly owns 4,122 shares of the company’s stock, valued at approximately $584,087.40. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Alexis M. Herman sold 735 shares of the business’s stock in a transaction that occurred on Friday, August 3rd. The shares were sold at an average price of $139.90, for a total transaction of $102,826.50. The disclosure for this sale can be found here. 0.62% of the stock is owned by insiders.

Several institutional investors have recently added to or reduced their stakes in the company. Sowell Financial Services LLC raised its stake in shares of Cummins by 16.8% in the 1st quarter. Sowell Financial Services LLC now owns 2,395 shares of the company’s stock valued at $350,000 after acquiring an additional 344 shares during the period. Stratos Wealth Partners LTD. raised its stake in shares of Cummins by 6.3% in the 1st quarter. Stratos Wealth Partners LTD. now owns 6,082 shares of the company’s stock valued at $986,000 after acquiring an additional 359 shares during the period. South Street Advisors LLC raised its stake in shares of Cummins by 0.6% in the 1st quarter. South Street Advisors LLC now owns 59,366 shares of the company’s stock valued at $9,622,000 after acquiring an additional 360 shares during the period. Blair William & Co. IL raised its stake in shares of Cummins by 3.0% in the 1st quarter. Blair William & Co. IL now owns 12,799 shares of the company’s stock valued at $2,075,000 after acquiring an additional 375 shares during the period. Finally, Wedbush Securities Inc. raised its stake in shares of Cummins by 15.0% in the 1st quarter. Wedbush Securities Inc. now owns 2,956 shares of the company’s stock valued at $479,000 after acquiring an additional 386 shares during the period. 81.14% of the stock is currently owned by institutional investors and hedge funds.

Cummins Company Profile

Cummins Inc designs, manufactures, distributes, and services diesel and natural gas engines, and engine-related component products worldwide. It operates through four segments: Engine, Distribution, Components, and Power Systems segments. The Engine segment manufactures and markets a range of diesel and natural gas powered engines under the Cummins and other customer brands for the heavy-and medium-duty truck, bus, recreational vehicle, light-duty automotive, construction, mining, marine, rail, oil and gas, defense, and agricultural markets.

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