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Compared to Estimates, Cummins (CMI) Q3 Earnings: A Look at Key Metrics
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For the quarter ended September 2023, Cummins (CMI - Free Report) reported revenue of $8.43 billion, up 15% over the same period last year. EPS came in at $4.73, compared to $3.21 in the year-ago quarter.
The reported revenue represents a surprise of +3.64% over the Zacks Consensus Estimate of $8.14 billion. With the consensus EPS estimate being $4.63, the EPS surprise was +2.16%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Cummins performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net sales- Distribution: $2.54 billion compared to the $2.53 billion average estimate based on five analysts. The reported number represents a change of +13.2% year over year.
Net sales- Eliminations: -$1.82 billion versus the five-analyst average estimate of -$1.84 billion. The reported number represents a year-over-year change of +1.7%.
Net sales- Engine: $2.93 billion versus $2.82 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +5.5% change.
Net sales- Components: $3.24 billion compared to the $3.10 billion average estimate based on five analysts. The reported number represents a change of +19.7% year over year.
Net sales- Accelera: $103 million compared to the $95.69 million average estimate based on five analysts. The reported number represents a change of +106% year over year.
Net sales- Power System: $1.44 billion versus $1.39 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +7% change.
Net sales- Engine- Off-highway: $429 million compared to the $491.08 million average estimate based on four analysts. The reported number represents a change of -9.3% year over year.
Net sales- Engine- Medium-duty Truck and Bus: $931 million versus $887.19 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +7.3% change.
Net sales- Engine- Heavy-duty Truck: $1.12 billion versus $1.02 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +14.8% change.
Net sales- Engine- Light-duty Automotive: $455 million versus $464.67 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -2.4% change.
Distribution segment sales by product- Service: $423 million versus $488.02 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +2.2% change.
Net sales- Components- Emission Solutions: $893 million versus $909.06 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +4.7% change.
Shares of Cummins have returned -4.2% over the past month versus the Zacks S&P 500 composite's -1.1% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Compared to Estimates, Cummins (CMI) Q3 Earnings: A Look at Key Metrics
For the quarter ended September 2023, Cummins (CMI - Free Report) reported revenue of $8.43 billion, up 15% over the same period last year. EPS came in at $4.73, compared to $3.21 in the year-ago quarter.
The reported revenue represents a surprise of +3.64% over the Zacks Consensus Estimate of $8.14 billion. With the consensus EPS estimate being $4.63, the EPS surprise was +2.16%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Cummins performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Net sales- Distribution: $2.54 billion compared to the $2.53 billion average estimate based on five analysts. The reported number represents a change of +13.2% year over year.
- Net sales- Eliminations: -$1.82 billion versus the five-analyst average estimate of -$1.84 billion. The reported number represents a year-over-year change of +1.7%.
- Net sales- Engine: $2.93 billion versus $2.82 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +5.5% change.
- Net sales- Components: $3.24 billion compared to the $3.10 billion average estimate based on five analysts. The reported number represents a change of +19.7% year over year.
- Net sales- Accelera: $103 million compared to the $95.69 million average estimate based on five analysts. The reported number represents a change of +106% year over year.
- Net sales- Power System: $1.44 billion versus $1.39 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +7% change.
- Net sales- Engine- Off-highway: $429 million compared to the $491.08 million average estimate based on four analysts. The reported number represents a change of -9.3% year over year.
- Net sales- Engine- Medium-duty Truck and Bus: $931 million versus $887.19 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +7.3% change.
- Net sales- Engine- Heavy-duty Truck: $1.12 billion versus $1.02 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +14.8% change.
- Net sales- Engine- Light-duty Automotive: $455 million versus $464.67 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -2.4% change.
- Distribution segment sales by product- Service: $423 million versus $488.02 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +2.2% change.
- Net sales- Components- Emission Solutions: $893 million versus $909.06 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +4.7% change.
View all Key Company Metrics for Cummins here>>>Shares of Cummins have returned -4.2% over the past month versus the Zacks S&P 500 composite's -1.1% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.