Engine manufacturer Cummins (NYSE: CMI) will be reporting earnings this Tuesday before market open. Here’s what investors should know.
Cummins beat analysts’ revenue expectations last quarter, reporting revenues of $8.54 billion, up 1.1% year on year. It was a strong quarter for the company, with a solid beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.
Is Cummins a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Cummins’s revenue to grow 1.8% year on year, a reversal from the 2.7% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Cummins rarely misses Wall Street’s revenue estimates.
Looking at Cummins’s peers in the heavy transportation equipment segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Federal Signal delivered year-on-year revenue growth of 34.9%, beating analysts’ expectations by 8%, and PACCAR reported a revenue decline of 8.9%, falling short of estimates by 0.9%. Federal Signal traded up 10.2% following the results while PACCAR was down 7.1%.
Read our full analysis of Federal Signal’s results here and PACCAR’s results here.
There has been positive sentiment among investors in the heavy transportation equipment segment, with share prices up 9.4% on average over the last month. Cummins is up 19.2% during the same time and is heading into earnings with an average analyst price target of $643.36 (compared to the current share price of $658.50).
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