Zacks: Analysts Expect Cummins Inc. (CMI) Will Post Earnings of $3.50 Per Share

Brokerages expect Cummins Inc. (NYSE:CMI) to announce earnings of $3.50 per share for the current fiscal quarter, according to Zacks Investment Research. Seven analysts have provided estimates for Cummins’ earnings. The highest EPS estimate is $3.77 and the lowest is $3.36. Cummins reported earnings of $3.30 per share in the same quarter last year, which would suggest a positive year over year growth rate of 6.1%. The firm is expected to issue its next earnings results on Tuesday, May 7th.

According to Zacks, analysts expect that Cummins will report full year earnings of $15.48 per share for the current financial year, with EPS estimates ranging from $14.06 to $16.06. For the next fiscal year, analysts forecast that the firm will report earnings of $14.97 per share, with EPS estimates ranging from $13.17 to $17.00. Zacks’ EPS averages are a mean average based on a survey of research firms that cover Cummins.

Cummins (NYSE:CMI) last released its earnings results on Wednesday, February 6th. The company reported $3.48 earnings per share for the quarter, missing the Zacks’ consensus estimate of $3.81 by ($0.33). The company had revenue of $6.13 billion during the quarter, compared to analysts’ expectations of $6.08 billion. Cummins had a net margin of 9.01% and a return on equity of 29.71%. The firm’s revenue was up 11.9% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $3.03 earnings per share.

A number of research analysts have weighed in on CMI shares. Credit Suisse Group reiterated a “buy” rating and issued a $168.00 target price on shares of Cummins in a research note on Tuesday, January 22nd. Morgan Stanley dropped their target price on shares of Cummins from $165.00 to $151.00 and set a “hold” rating on the stock in a research note on Wednesday, October 31st. Zacks Investment Research cut shares of Cummins from a “hold” rating to a “sell” rating in a research note on Wednesday, January 9th. JPMorgan Chase & Co. upgraded shares of Cummins from an “underweight” rating to a “neutral” rating and boosted their target price for the company from $137.00 to $147.00 in a research note on Wednesday, October 31st. Finally, Royal Bank of Canada reiterated a “hold” rating and issued a $155.00 target price on shares of Cummins in a research note on Monday, December 24th. Two analysts have rated the stock with a sell rating, fourteen have issued a hold rating and seven have given a buy rating to the company. The company has a consensus rating of “Hold” and a consensus target price of $161.07.

CMI traded up $0.92 during midday trading on Wednesday, reaching $152.71. The company had a trading volume of 1,139,152 shares, compared to its average volume of 1,372,445. The company has a quick ratio of 0.95, a current ratio of 1.54 and a debt-to-equity ratio of 0.19. The stock has a market cap of $24.45 billion, a price-to-earnings ratio of 11.54, a PEG ratio of 1.03 and a beta of 1.14. Cummins has a 12-month low of $124.40 and a 12-month high of $173.32.

The firm also recently declared a quarterly dividend, which will be paid on Thursday, March 7th. Investors of record on Friday, February 22nd will be paid a dividend of $1.14 per share. This represents a $4.56 dividend on an annualized basis and a dividend yield of 2.99%. The ex-dividend date of this dividend is Thursday, February 21st. Cummins’s payout ratio is currently 34.47%.

In related news, Director Alexis M. Herman sold 423 shares of the company’s stock in a transaction that occurred on Tuesday, February 12th. The shares were sold at an average price of $150.12, for a total transaction of $63,500.76. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, VP Tracy A. Embree sold 206 shares of the company’s stock in a transaction that occurred on Wednesday, February 6th. The shares were sold at an average price of $150.00, for a total transaction of $30,900.00. Following the sale, the vice president now owns 4,221 shares in the company, valued at $633,150. The disclosure for this sale can be found here. Insiders have sold a total of 45,005 shares of company stock worth $6,404,390 over the last 90 days. 0.67% of the stock is currently owned by corporate insiders.

A number of institutional investors have recently bought and sold shares of the stock. Brown Advisory Inc. increased its holdings in Cummins by 324.6% during the 4th quarter. Brown Advisory Inc. now owns 37,035 shares of the company’s stock worth $4,950,000 after acquiring an additional 28,313 shares during the period. Natixis Advisors L.P. increased its holdings in Cummins by 1.8% during the 4th quarter. Natixis Advisors L.P. now owns 17,267 shares of the company’s stock worth $2,308,000 after acquiring an additional 310 shares during the period. Murphy Pohlad Asset Management LLC increased its holdings in Cummins by 7.7% during the 4th quarter. Murphy Pohlad Asset Management LLC now owns 26,795 shares of the company’s stock worth $3,580,000 after acquiring an additional 1,910 shares during the period. Flinton Capital Management LLC increased its holdings in Cummins by 12.1% during the 4th quarter. Flinton Capital Management LLC now owns 72,896 shares of the company’s stock worth $9,742,000 after acquiring an additional 7,854 shares during the period. Finally, Dimensional Fund Advisors LP increased its holdings in Cummins by 37.4% during the 4th quarter. Dimensional Fund Advisors LP now owns 1,289,666 shares of the company’s stock worth $172,338,000 after acquiring an additional 350,979 shares during the period. 89.03% of the stock is currently owned by institutional investors and hedge funds.

About Cummins

Cummins Inc designs, manufactures, distributes, and services diesel and natural gas engines, and engine-related component products worldwide. It operates through four segments: Engine, Distribution, Components, and Power Systems segments. The Engine segment manufactures and markets a range of diesel and natural gas powered engines under the Cummins and other customer brands for the heavy-and medium-duty truck, bus, recreational vehicle, light-duty automotive, construction, mining, marine, rail, oil and gas, defense, and agricultural markets.

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