Cummins Reports Strong Earnings Results for Q1 2020
Investors and industry analysts alike were pleased to learn that Cummins (NYSE:CMI), the world-renowned engine and powertrain technology company, exceeded expectations for their first quarter of 2020. According to their latest financial report released on Tuesday, May 2nd, the company posted earnings per share of $5.55. This figure is a significant increase from analyst consensus estimates of $4.70, beating predictions by an impressive $0.85.
In addition to outperforming forecasts on EPS, Cummins also reported a net margin of 8.37% and an eye-catching return on equity (ROE) of 25.94%. For the first quarter of this year alone, the company brought in revenue amounting to $8.45 billion – a growth rate of 32.4% in comparison to last year.
Despite these excellent results and figures, it is important to note some insider selling activity going on at Cummins recently. VP Sharon R. Barner sold over 5,500 shares in two transactions in February while VP Walter J Fier sold over 3,300 shares also in February with both sales representatives receiving millions in returns due to the high number sold at very high average prices as opposed to current market levels.
Analysts attribute the construction industry’s robust performance this year as one key factor behind boosting Cummin’s profits: as more housing developments are constructed across markets worldwide during Q1 including luxurious varieties meant for foreign investors taking advantage of weak currencies, this translates into more investment opportunities for construction companies all over given that houses mean need for new appliances like generators among others cementing Cumnin’s place at some valuable niche markets.
Market analysts have noted that bullish global economic sentiment has been fueling much of Cummin’s positive performance recording a whopping record-high price rise upon announcement with stock valuations hitting just below the all-time high for the year of $261.91 with opening stock prices higher than averages at $221.45.
Looking forward, the company’s management is optimistic about their future revenue and profit growth given current trends in global construction and industrial activity amidst strong investments in power generation. As a leader in engine technology and alternative energy sources, Cummins may be well-positioned to continue performing strongly while serving global betterment through clean energy advocacy for climate change mitigation in the years to come.
Cummins Inc. Receives Positive Report from William Blair, FY2023 Earnings Estimates Raised
Cummins Inc. (NYSE:CMI) received a positive report from William Blair on May 3rd, with stock analysts raising their FY2023 earnings estimates for the company. According to William Blair analyst L. De Maria, Cummins is expected to post earnings of $19.50 per share for the fiscal year, up from their previous forecast of $19.10 per share. The consensus estimate for Cummins’ current full-year earnings is $19.08 per share, making the raised forecast a welcome boost.
Cummins has also been mentioned in several other research reports, including those authored by Credit Suisse Group, VNET Group and Deutsche Bank Aktiengesellschaft over the past few months. StockNews.com began coverage on Cummins during March 2017 and issued a “buy” rating on the stock. Although five analysts have rated the stock as “hold”, three experts have opted for a more bullish stance and given their buy ratings to it.
Institutional investors have also shown an interest in adding Cummins to their portfolios, with Vanguard Group and Price T Rowe Associates both significantly increasing their positions during Q4 2016 and Charles Schwab Investment Management Inc., Geode Capital Management LLC and LSV Asset Management growing their stakes in Q3 2016.
Although there are no guarantees when predicting market movements or corporate performance, these indications suggest that Cummins may be poised for further growth going forward into this year and beyond as it continues to build momentum among investors who are betting on this industrial manufacturer’s long term potential.
