We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Factors Shaping Cummins' (CMI) Fate Ahead of Q3 Earnings
Read MoreHide Full Article
Cummins Inc. (CMI - Free Report) is slated to release third-quarter 2020 results on Oct 27, before the opening bell. The Zacks Consensus Estimate for the quarter’s earnings and revenues is pegged at $2.40 per share and $4.47 billion, respectively.
The company delivered better-than-expected results in the last reported quarter on higher-than-expected contribution from Distribution, Engine and Power Systems segments. Over the trailing four quarters, Cummins beat estimates on three occasions and missed once, with the average surprise being 45.2%. This is depicted in the graph below:
The Zacks Consensus Estimate for Cummins’ third-quarter earnings per share has been upwardly revised by 3 cents in the past seven days. The year-ago earnings were $3.83 per share. The Zacks Consensus Estimate for revenues suggests a year-over-year decrease of 22.5%.
Earnings Whispers
Our proven model predicts an earnings beat for Cummins for the to-be-reported quarter, as it has the right combination of the two key ingredients. A combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Cummins has an Earnings ESP of +3.58%. This is because the Most Accurate Estimate for loss is pegged 9 cents higher than the Zacks Consensus Estimate.
Zacks Rank: It carries a Zacks Rank of 3 currently.
Key Factors
After taking a nasty hit during the second quarter, vehicle sales across the globe have been gradually on the mend. With third-quarter auto sales, especially in China and the United States, rebounding from coronavirus-related lows, things are looking up for Cummins this earnings season. Gradual reopening of the economy and a subsequent rise in sales of vehicles including SUVs and commercial trucks are likely to have boosted the demand for Cummins’ products. While sales of the engine manufacturer are expected to have declined on a year-over-year basis, performance from all segments is likely to have improved sequentially.
The Zacks Consensus Estimate for the engine segment’s quarterly net sales is pegged at $1,844 million, indicating an increase from the prior quarter’s $1,423 million. The same for the segment’s EBITDA is $241 million, calling for a 60% increase sequentially.
Third-quarter sales estimate for the distribution segment is pegged at $1,786 million, suggesting an improvement of 11.3% from the prior-quarter levels. The consensus mark for the distribution segment’s EBITDA stands at $175 million, suggesting an increase from $160 million recorded in the previous quarter.
The Zacks Consensus Estimate for its power system segment’s quarterly net sales is $826 million, implying growth from the prior quarter’s $777 million. Further, the Zacks Consensus Estimate for the components segment’s quarterly net sales of $1,262 million points to a 9.7% rise from the prior-quarter levels. Increased sales of turbochargers and emission solutions products are expected to have driven sales from the components unit. The consensus estimate for the segment’s EBITDA also indicates an uptick of 25% from the prior-quarter levels.
Other Stocks With Favorable Combination
Cummins is not the only auto company looking up this earnings season. Here are some other companies within the same space, which, according to our model, also have the right combination of elements to post an earnings beat in the to-be-reported quarter:
Ford (F - Free Report) has an Earnings ESP of +19.51% and carries a Zacks Rank #2 at present. The company is slated to release third-quarter 2020 earnings on Oct 28.
O’Reilly Automotive (ORLY - Free Report) has an Earnings ESP of +4.18% and currently carries a Zacks Rank #3. The company is slated to release third-quarter 2020 earnings on Oct 28.
Cooper Tire Rubber has an Earnings ESP of +19.84% and carries a Zacks Rank #1 currently. The company is slated to release third-quarter 2020 earnings on Oct 29.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
Image: Bigstock
Factors Shaping Cummins' (CMI) Fate Ahead of Q3 Earnings
Cummins Inc. (CMI - Free Report) is slated to release third-quarter 2020 results on Oct 27, before the opening bell. The Zacks Consensus Estimate for the quarter’s earnings and revenues is pegged at $2.40 per share and $4.47 billion, respectively.
The company delivered better-than-expected results in the last reported quarter on higher-than-expected contribution from Distribution, Engine and Power Systems segments. Over the trailing four quarters, Cummins beat estimates on three occasions and missed once, with the average surprise being 45.2%. This is depicted in the graph below:
Cummins Inc. Price and EPS Surprise
Cummins Inc. price-eps-surprise | Cummins Inc. Quote
Trend in Estimate Revisions
The Zacks Consensus Estimate for Cummins’ third-quarter earnings per share has been upwardly revised by 3 cents in the past seven days. The year-ago earnings were $3.83 per share. The Zacks Consensus Estimate for revenues suggests a year-over-year decrease of 22.5%.
Earnings Whispers
Our proven model predicts an earnings beat for Cummins for the to-be-reported quarter, as it has the right combination of the two key ingredients. A combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Cummins has an Earnings ESP of +3.58%. This is because the Most Accurate Estimate for loss is pegged 9 cents higher than the Zacks Consensus Estimate.
Zacks Rank: It carries a Zacks Rank of 3 currently.
Key Factors
After taking a nasty hit during the second quarter, vehicle sales across the globe have been gradually on the mend. With third-quarter auto sales, especially in China and the United States, rebounding from coronavirus-related lows, things are looking up for Cummins this earnings season. Gradual reopening of the economy and a subsequent rise in sales of vehicles including SUVs and commercial trucks are likely to have boosted the demand for Cummins’ products. While sales of the engine manufacturer are expected to have declined on a year-over-year basis, performance from all segments is likely to have improved sequentially.
The Zacks Consensus Estimate for the engine segment’s quarterly net sales is pegged at $1,844 million, indicating an increase from the prior quarter’s $1,423 million. The same for the segment’s EBITDA is $241 million, calling for a 60% increase sequentially.
Third-quarter sales estimate for the distribution segment is pegged at $1,786 million, suggesting an improvement of 11.3% from the prior-quarter levels. The consensus mark for the distribution segment’s EBITDA stands at $175 million, suggesting an increase from $160 million recorded in the previous quarter.
The Zacks Consensus Estimate for its power system segment’s quarterly net sales is $826 million, implying growth from the prior quarter’s $777 million. Further, the Zacks Consensus Estimate for the components segment’s quarterly net sales of $1,262 million points to a 9.7% rise from the prior-quarter levels. Increased sales of turbochargers and emission solutions products are expected to have driven sales from the components unit. The consensus estimate for the segment’s EBITDA also indicates an uptick of 25% from the prior-quarter levels.
Other Stocks With Favorable Combination
Cummins is not the only auto company looking up this earnings season. Here are some other companies within the same space, which, according to our model, also have the right combination of elements to post an earnings beat in the to-be-reported quarter:
Ford (F - Free Report) has an Earnings ESP of +19.51% and carries a Zacks Rank #2 at present. The company is slated to release third-quarter 2020 earnings on Oct 28.
O’Reilly Automotive (ORLY - Free Report) has an Earnings ESP of +4.18% and currently carries a Zacks Rank #3. The company is slated to release third-quarter 2020 earnings on Oct 28.
Cooper Tire Rubber has an Earnings ESP of +19.84% and carries a Zacks Rank #1 currently. The company is slated to release third-quarter 2020 earnings on Oct 29.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>