We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties. You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies. In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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.
Cummins Inc. (CMI - Free Report) reported first-quarter 2023 earnings of $5.55 per share, which reflects an improvement from the prior-year quarter earnings of $4.04 per share. The reported figure also surpassed the Zacks Consensus Estimate of $4.81. Higher-than-expected EBITDA in the Engine, Components, Distribution and Power Systems segments resulted in the outperformance. Cummins’ revenues totaled $8,453 million, up 32.3% from $6,385 million recorded in the year-ago quarter. The top line also beat the Zacks Consensus Estimate of $8,022 million.
In the reported quarter, sales in the Engine segment were up 8% year over year to $2,986 million. The metric topped the Zacks Consensus Estimate of $2,933 million. The segment’s EBITDA increased to $457 million (accounting for 15.3% of sales) from $390 million (14.2% of sales) and came ahead of the Zacks Consensus Estimate of $441 million. On-highway revenues climbed 9%, driven by pricing actions and strong demand in the North American truck markets, strong aftermarket demand and smart pricing actions. Off-highway revenues rose 6.2%. Sales increased 9% in North America and 8% in international markets.
Sales in the Distribution segment totaled $2,406 million, up 14% year over year and beat the consensus mark of $2,273 million. The segment’s EBITDA came in at $335 million (13.9% of sales), up from the previous year’s $110 million (5.2% of sales). Also, the metric surpassed the consensus mark of $209 million. Revenues from North America jumped 24%, while international sales plunged 5%. Higher revenues were driven by increased demand for parts and services and smart pricing actions.
Sales in the Components segment were up 79% from the prior-year quarter to $3,557 million and surpassed the consensus mark of $3,237 million. Sales in North America were up 87%, while the same in international markets increased 69%, thanks to the Meritor buyout. The segment’s EBITDA was $507 million (14.3% of sales) compared with the year-ago figure of $320 million (16.1% of sales). The metric surpassed the Zacks Consensus Estimate of $472 million.
Sales in the Power Systems segment rose 16% from the year-ago quarter to $1,343 million, topping the consensus mark of $1,306 million. The segment’s EBITDA increased to $219 million (13.9% of sales) from $90 million (7.8% of sales) and beat the consensus mark of $160 million. Power generation and industrial revenues were up 16%.
Sales in the Accelera segment came in at $85 million, soaring 174% from the year-ago level and outperforming the consensus metric of $68 million. The segment incurred a pretax loss of $94 million, which was wider than the consensus mark of $68 million.
Financials
Cummins’ cash and cash equivalents were $1,980 million as of Mar 31, 2023, down from $2,101 million on Dec 31, 2022. Long-term debt totaled $4,409 million, down from $4,498 million on Dec 31, 2022.
2023 Outlook Lifted
Cummins now expects revenues to grow in the range of 15-20% year over year, up from the prior projection of 12%-17%. EBITDA is forecast to be in the range of 15-15.7% of sales, higher than the previous forecast of 14.5%-15.2%. Cummins continues to stick to its plan of returning nearly 50% of its operating cash flow to shareholders in the form of dividends and share repurchases.
Key Releases From the Auto Space
Tesla (TSLA - Free Report) reported first-quarter 2023 earnings of 85 cents per share, down from the year-ago figure of $1.07 but outpaced the Zacks Consensus Estimate of 83 cents. This marked the ninth straight quarter of earnings beat for the electric vehicle behemoth. Higher-than-expected revenues from its Energy Generation/Storage and Services/Other segments resulted in this outperformance.
Total revenues came in at $23,329 million, witnessing year-over-year growth of 24%. However, the top line missed the consensus mark of $23,472 million. Tesla reported an overall gross margin of 19.3% for the reported quarter. The operating margin came in at 11.4%. Management stuck to its target of around 50% growth in deliveries in the foreseeable future. For 2023, it expects deliveries to reach 1.8 million units.
General Motors (GM - Free Report) reported first-quarter 2023 adjusted earnings of $2.21 per share, surpassing the Zacks Consensus Estimate of $1.64. Higher-than-expected operating profits from GMNA, GMI and Financial segments led to the outperformance. The bottom line also rose from the year-ago quarter’s earnings of $2.09 per share.
Revenues of $39,985 million beat the Zacks Consensus Estimate of $38,677.9 million and increased from $35,979 million recorded in the year-ago period. However, the company recorded an adjusted EBIT of $3,803 million, lower than $4,044 million in the prior-year quarter. The automaker’s share in the GM market was 8.6% in the reported quarter, down from the year-ago quarter’s 9%.
PACCAR’s (PCAR - Free Report) earnings of $2.25 per share for first-quarter 2023 beat the Zacks Consensus Estimate of $1.82 and rocketed 95.6% from the year-ago figure. Higher-than-expected pretax income from Trucks, Parts and Financial Services segments resulted in the outperformance. Consolidated revenues (including trucks and financial services) came in at $8,473.3 million, up from $6,472.6 million recorded in the corresponding quarter of 2022.
PACCAR’s cash and marketable debt securities amounted to $5,922.2 million as of Mar 31, 2023, compared with $6,158.9 million on Dec 31, 2022. The company paid cash dividends of 25 cents per share during the reported quarter. Capex and R&D expenses for 2023 are envisioned in the band of $600-$650 million and $380-$420 million, respectively.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.
Image: Bigstock
Cummins (CMI) Q1 Earnings & Sales Beat, 2023 View Raised
Cummins Inc. (CMI - Free Report) reported first-quarter 2023 earnings of $5.55 per share, which reflects an improvement from the prior-year quarter earnings of $4.04 per share. The reported figure also surpassed the Zacks Consensus Estimate of $4.81. Higher-than-expected EBITDA in the Engine, Components, Distribution and Power Systems segments resulted in the outperformance. Cummins’ revenues totaled $8,453 million, up 32.3% from $6,385 million recorded in the year-ago quarter. The top line also beat the Zacks Consensus Estimate of $8,022 million.
Cummins currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cummins Inc. Price, Consensus and EPS Surprise
Cummins Inc. price-consensus-eps-surprise-chart | Cummins Inc. Quote
Key Takeaways
In the reported quarter, sales in the Engine segment were up 8% year over year to $2,986 million. The metric topped the Zacks Consensus Estimate of $2,933 million. The segment’s EBITDA increased to $457 million (accounting for 15.3% of sales) from $390 million (14.2% of sales) and came ahead of the Zacks Consensus Estimate of $441 million. On-highway revenues climbed 9%, driven by pricing actions and strong demand in the North American truck markets, strong aftermarket demand and smart pricing actions. Off-highway revenues rose 6.2%. Sales increased 9% in North America and 8% in international markets.
Sales in the Distribution segment totaled $2,406 million, up 14% year over year and beat the consensus mark of $2,273 million. The segment’s EBITDA came in at $335 million (13.9% of sales), up from the previous year’s $110 million (5.2% of sales). Also, the metric surpassed the consensus mark of $209 million. Revenues from North America jumped 24%, while international sales plunged 5%. Higher revenues were driven by increased demand for parts and services and smart pricing actions.
Sales in the Components segment were up 79% from the prior-year quarter to $3,557 million and surpassed the consensus mark of $3,237 million. Sales in North America were up 87%, while the same in international markets increased 69%, thanks to the Meritor buyout. The segment’s EBITDA was $507 million (14.3% of sales) compared with the year-ago figure of $320 million (16.1% of sales). The metric surpassed the Zacks Consensus Estimate of $472 million.
Sales in the Power Systems segment rose 16% from the year-ago quarter to $1,343 million, topping the consensus mark of $1,306 million. The segment’s EBITDA increased to $219 million (13.9% of sales) from $90 million (7.8% of sales) and beat the consensus mark of $160 million. Power generation and industrial revenues were up 16%.
Sales in the Accelera segment came in at $85 million, soaring 174% from the year-ago level and outperforming the consensus metric of $68 million. The segment incurred a pretax loss of $94 million, which was wider than the consensus mark of $68 million.
Financials
Cummins’ cash and cash equivalents were $1,980 million as of Mar 31, 2023, down from $2,101 million on Dec 31, 2022. Long-term debt totaled $4,409 million, down from $4,498 million on Dec 31, 2022.
2023 Outlook Lifted
Cummins now expects revenues to grow in the range of 15-20% year over year, up from the prior projection of 12%-17%. EBITDA is forecast to be in the range of 15-15.7% of sales, higher than the previous forecast of 14.5%-15.2%. Cummins continues to stick to its plan of returning nearly 50% of its operating cash flow to shareholders in the form of dividends and share repurchases.
Key Releases From the Auto Space
Tesla (TSLA - Free Report) reported first-quarter 2023 earnings of 85 cents per share, down from the year-ago figure of $1.07 but outpaced the Zacks Consensus Estimate of 83 cents. This marked the ninth straight quarter of earnings beat for the electric vehicle behemoth. Higher-than-expected revenues from its Energy Generation/Storage and Services/Other segments resulted in this outperformance.
Total revenues came in at $23,329 million, witnessing year-over-year growth of 24%. However, the top line missed the consensus mark of $23,472 million. Tesla reported an overall gross margin of 19.3% for the reported quarter. The operating margin came in at 11.4%. Management stuck to its target of around 50% growth in deliveries in the foreseeable future. For 2023, it expects deliveries to reach 1.8 million units.
General Motors (GM - Free Report) reported first-quarter 2023 adjusted earnings of $2.21 per share, surpassing the Zacks Consensus Estimate of $1.64. Higher-than-expected operating profits from GMNA, GMI and Financial segments led to the outperformance. The bottom line also rose from the year-ago quarter’s earnings of $2.09 per share.
Revenues of $39,985 million beat the Zacks Consensus Estimate of $38,677.9 million and increased from $35,979 million recorded in the year-ago period. However, the company recorded an adjusted EBIT of $3,803 million, lower than $4,044 million in the prior-year quarter. The automaker’s share in the GM market was 8.6% in the reported quarter, down from the year-ago quarter’s 9%.
PACCAR’s (PCAR - Free Report) earnings of $2.25 per share for first-quarter 2023 beat the Zacks Consensus Estimate of $1.82 and rocketed 95.6% from the year-ago figure. Higher-than-expected pretax income from Trucks, Parts and Financial Services segments resulted in the outperformance. Consolidated revenues (including trucks and financial services) came in at $8,473.3 million, up from $6,472.6 million recorded in the corresponding quarter of 2022.
PACCAR’s cash and marketable debt securities amounted to $5,922.2 million as of Mar 31, 2023, compared with $6,158.9 million on Dec 31, 2022. The company paid cash dividends of 25 cents per share during the reported quarter. Capex and R&D expenses for 2023 are envisioned in the band of $600-$650 million and $380-$420 million, respectively.