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Cummins (CMI) Q2 Earnings & Sales Top Estimates, Increase Y/Y
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Cummins Inc. (CMI - Free Report) reported second-quarter 2024 earnings of $5.26 per share, which increased from $5.18 per share recorded in the corresponding quarter of 2023. The bottom line also surpassed the Zacks Consensus Estimate of $4.85 per share. The outperformance was driven by higher-than-expected revenues from the Engine, Power Systems and Distribution segments. Cummins’ revenues totaled $8.8 billion, compared with $8.64 billion recorded in the year-ago quarter. The top line beat the Zacks Consensus Estimate of $8.28 billion.
In the reported quarter, sales in the Engine segment were up 5% year over year to $3.2 billion. The metric topped our estimate of $3.07 billion. Sales in North America rose 7%, thanks to strong demand for medium-duty trucks and pricing actions. International sales increased 2% year over year. The segment’s EBITDA rose to $445 million (accounting for 14.1% of sales) from $425 million (14.2% of sales) in the year-ago period and topped our estimate of $419.4 million.
Sales in the Distribution segment totaled $2.8 billion, up 9% year over year and topped our projection of $2.7 billion. Robust demand for power generation products and smart pricing led to revenue growth. Sales in North America inched up 6%, while international sales rose 16%. The segment’s EBITDA came in at $314 million (11.1% of sales), up from the year-ago quarter’s $299 million (11.5% of sales) but falling shy of our estimate of $315.5 million.
Sales in the Components segment totaled $3 billion, down 13% from the prior-year quarter. Sales, however, matched our forecast. Revenues in North America fell 10% and international sales contracted 17% on separation of the Atmus business and lower demand in Europe and China. The segment’s EBITDA was $406 million (13.6% of sales), lower than the year-ago figure of $486 million (14.2% of sales). The metric missed our estimate of $414.6 million.
Sales in the Power Systems segment rose 9% from the year-ago quarter to $1.6 billion and beat our estimate of $1.58 billion. While power generation revenues rose 16% on the back of higher global demand (especially for the data center market), industrial revenues were up 2%, thanks to strong mining demand. The segment’s EBITDA rose to $301 million (18.9% of sales) from $201 million (13.8% of sales) and breezed past our estimate of $236.3 million.
Sales in the Accelera segment came in at $111 million, up 31% from the year-ago level but lagged our estimate of $126.4 million. The segment incurred a pretax loss of $117 million, which was wider than our estimate of $108.3 million. Costs associated with the development of electric powertrains, fuel cells and electrolyzers, as well as products to support battery electric vehicles, resulted in EBITDA losses.
Financials & Outlook
Cummins’ cash and cash equivalents were $1.59 billion as of Jun 30, 2024, down from $2.18 billion on Dec 31, 2023. Long-term debt totaled $5.42 billion, up from $4.8 billion as of Dec 31, 2023.
Cummins raised its sales forecast for full-year 2024, driven by stronger-than-expected demand across several markets, notably in North America's on-highway and power generation sectors. The company now expects revenues to be down 3% to flat, compared with the prior guidance of a decline of 2-5% year over year. EBITDA is now anticipated in the range of 15-15.5%, compared with the prior guided range of 14.5-15.5%. Cummins continues to stick to its plan of returning nearly 50% of its operating cash flow to shareholders in the form of dividends.
General Motors (GM - Free Report) reported second-quarter 2024 adjusted earnings of $3.06 per share, which surpassed the Zacks Consensus Estimate of $2.67. The bottom line also increased from the year-ago quarter’s level of $1.91. Solid results from the GMNA segment led to the outperformance. Revenues of $47.97 billion beat the Zacks Consensus Estimate of $44.94 billion and increased from $44.75 billion recorded in the year-ago period. General Motors had cash and cash equivalents of $22.5 billion as of Jun 30, 2024. The long-term automotive debt at the end of the quarter was $15.4 billion.
Ford (F - Free Report) reported second-quarter 2024 adjusted earnings per share of 47 cents, which missed the Zacks Consensus Estimate of 64 cents and declined from 72 cents recorded in the year-ago quarter. The company’s consolidated second-quarter revenues came in at $47.8 billion, up 6.3% year over year. Ford had cash and cash equivalents of $19.95 billion as of Jun 30, 2024. Long-term debt, excluding Ford Credit, totaled $18.69 billion at the end of the second quarter of 2024.
PACCAR Inc. (PCAR - Free Report) recorded earnings of $2.13 per share for the second quarter of 2024, which lagged the Zacks Consensus Estimate of $2.15 and also declined from $2.33 per share recorded in the year-ago period. The underperformance mainly stemmed from lower pretax profit from the Trucks and Financial Services segment. Consolidated revenues (including trucks and financial services) came in at $8.77 billion, down from $8.88 billion in the corresponding quarter of 2023. PACCAR’s cash and marketable debt securities amounted to $7.8 billion as of Jun 30, 2024, compared with $8.66 million as of Dec 31, 2023.
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Cummins (CMI) Q2 Earnings & Sales Top Estimates, Increase Y/Y
Cummins Inc. (CMI - Free Report) reported second-quarter 2024 earnings of $5.26 per share, which increased from $5.18 per share recorded in the corresponding quarter of 2023. The bottom line also surpassed the Zacks Consensus Estimate of $4.85 per share. The outperformance was driven by higher-than-expected revenues from the Engine, Power Systems and Distribution segments. Cummins’ revenues totaled $8.8 billion, compared with $8.64 billion recorded in the year-ago quarter. The top line beat the Zacks Consensus Estimate of $8.28 billion.
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 5% year over year to $3.2 billion. The metric topped our estimate of $3.07 billion. Sales in North America rose 7%, thanks to strong demand for medium-duty trucks and pricing actions. International sales increased 2% year over year. The segment’s EBITDA rose to $445 million (accounting for 14.1% of sales) from $425 million (14.2% of sales) in the year-ago period and topped our estimate of $419.4 million.
Sales in the Distribution segment totaled $2.8 billion, up 9% year over year and topped our projection of $2.7 billion. Robust demand for power generation products and smart pricing led to revenue growth. Sales in North America inched up 6%, while international sales rose 16%. The segment’s EBITDA came in at $314 million (11.1% of sales), up from the year-ago quarter’s $299 million (11.5% of sales) but falling shy of our estimate of $315.5 million.
Sales in the Components segment totaled $3 billion, down 13% from the prior-year quarter. Sales, however, matched our forecast. Revenues in North America fell 10% and international sales contracted 17% on separation of the Atmus business and lower demand in Europe and China. The segment’s EBITDA was $406 million (13.6% of sales), lower than the year-ago figure of $486 million (14.2% of sales). The metric missed our estimate of $414.6 million.
Sales in the Power Systems segment rose 9% from the year-ago quarter to $1.6 billion and beat our estimate of $1.58 billion. While power generation revenues rose 16% on the back of higher global demand (especially for the data center market), industrial revenues were up 2%, thanks to strong mining demand. The segment’s EBITDA rose to $301 million (18.9% of sales) from $201 million (13.8% of sales) and breezed past our estimate of $236.3 million.
Sales in the Accelera segment came in at $111 million, up 31% from the year-ago level but lagged our estimate of $126.4 million. The segment incurred a pretax loss of $117 million, which was wider than our estimate of $108.3 million. Costs associated with the development of electric powertrains, fuel cells and electrolyzers, as well as products to support battery electric vehicles, resulted in EBITDA losses.
Financials & Outlook
Cummins’ cash and cash equivalents were $1.59 billion as of Jun 30, 2024, down from $2.18 billion on Dec 31, 2023. Long-term debt totaled $5.42 billion, up from $4.8 billion as of Dec 31, 2023.
Cummins raised its sales forecast for full-year 2024, driven by stronger-than-expected demand across several markets, notably in North America's on-highway and power generation sectors. The company now expects revenues to be down 3% to flat, compared with the prior guidance of a decline of 2-5% year over year. EBITDA is now anticipated in the range of 15-15.5%, compared with the prior guided range of 14.5-15.5%. Cummins continues to stick to its plan of returning nearly 50% of its operating cash flow to shareholders in the form of dividends.
Cummins currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Releases From the Auto Space
General Motors (GM - Free Report) reported second-quarter 2024 adjusted earnings of $3.06 per share, which surpassed the Zacks Consensus Estimate of $2.67. The bottom line also increased from the year-ago quarter’s level of $1.91. Solid results from the GMNA segment led to the outperformance. Revenues of $47.97 billion beat the Zacks Consensus Estimate of $44.94 billion and increased from $44.75 billion recorded in the year-ago period. General Motors had cash and cash equivalents of $22.5 billion as of Jun 30, 2024. The long-term automotive debt at the end of the quarter was $15.4 billion.
Ford (F - Free Report) reported second-quarter 2024 adjusted earnings per share of 47 cents, which missed the Zacks Consensus Estimate of 64 cents and declined from 72 cents recorded in the year-ago quarter. The company’s consolidated second-quarter revenues came in at $47.8 billion, up 6.3% year over year. Ford had cash and cash equivalents of $19.95 billion as of Jun 30, 2024. Long-term debt, excluding Ford Credit, totaled $18.69 billion at the end of the second quarter of 2024.
PACCAR Inc. (PCAR - Free Report) recorded earnings of $2.13 per share for the second quarter of 2024, which lagged the Zacks Consensus Estimate of $2.15 and also declined from $2.33 per share recorded in the year-ago period. The underperformance mainly stemmed from lower pretax profit from the Trucks and Financial Services segment. Consolidated revenues (including trucks and financial services) came in at $8.77 billion, down from $8.88 billion in the corresponding quarter of 2023. PACCAR’s cash and marketable debt securities amounted to $7.8 billion as of Jun 30, 2024, compared with $8.66 million as of Dec 31, 2023.