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Cummins (CMI) Q3 Earnings & Revenues Beat Estimates

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Cummins Inc. (CMI - Free Report) is a leading global designer, manufacturer and distributor of diesel and natural gas engines, electric power generation systems, and engine-related components, fuel systems, controls and air handling systems. Cummins is poised to benefit from its innovative products, rising demand for its engines among OEMs, and focus on cost reduction. Further, Cummins’ Distribution segment is poised to gain from the acquisitions in North America and expansion through partnerships.

Estimate Trend & Surprise History

Investors should note that the third-quarter earnings estimate for Cummins have been rising over the last 30 days.

The company surpassed the Zacks Consensus Estimate in three of the trailing four quarters with an average beat of around 11.1%. Thus, investors have been eagerly awaiting Cummins’ latest earnings report.

Cummins Inc. Price and EPS Surprise

We have highlighted some of the key stats from this just-revealed announcement below:

Earnings

Cummins’ earnings reported earnings of $2.71 per share in the third quarter of 2017, beating the Zacks Consensus Estimate of $2.47.

Revenues

Cummins reported revenues of $5.29 billion, up 26.2% year over year. Revenues also surpassed the Zacks Consensus Estimate of $4.79 billion. This was due to increased demand of trucks oil and gas and construction markets in North America.

Key Stats/Developments to Note

For 2017, Cummins anticipates revenues to grow by 14-15%, compared to the prior guidance of 9-11% growth in revenues. EBIT is expected in the range of 11.8-12.2%, almost unchanged from the previous guidance range of 11.75–12.5%. These expectations include the impact of the new Eaton Cummins Automated Transmission Technologies joint venture.

Zacks Rank

Currently, Cummins has a Zacks Rank #2 (Buy), but that could change following its earnings report which was just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Check back later for our full write up on Cummins’ earnings report!

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