Cummins Inc. (NYSE:CMI) Expected to Post Earnings of $4.20 Per Share

Brokerages expect Cummins Inc. (NYSE:CMI) to announce $4.20 earnings per share (EPS) for the current fiscal quarter, according to Zacks. Six analysts have provided estimates for Cummins’ earnings. The lowest EPS estimate is $3.93 and the highest is $4.61. Cummins reported earnings per share of $3.57 in the same quarter last year, which would suggest a positive year-over-year growth rate of 17.6%. The company is expected to issue its next earnings report before the market opens on Tuesday, November 2nd.

On average, analysts expect that Cummins will report full-year earnings of $16.31 per share for the current year, with EPS estimates ranging from $15.90 to $16.81. For the next fiscal year, analysts anticipate that the business will report earnings of $19.00 per share, with EPS estimates ranging from $18.12 to $20.05. Zacks Investment Research’s earnings per share calculations are a mean average based on a survey of sell-side analysts that follow Cummins.

Cummins (NYSE:CMI) last announced its earnings results on Monday, August 2nd. The company reported $4.10 earnings per share for the quarter, topping the Zacks’ consensus estimate of $4.06 by $0.04. Cummins had a net margin of 9.52% and a return on equity of 25.26%. The company had revenue of $6.10 billion during the quarter, compared to the consensus estimate of $6 billion. During the same period in the previous year, the firm posted $1.86 earnings per share. The company’s revenue was up 58.4% on a year-over-year basis.

CMI has been the subject of a number of recent research reports. Deutsche Bank Aktiengesellschaft dropped their price target on shares of Cummins from $262.00 to $255.00 and set a “hold” rating for the company in a research note on Wednesday, July 14th. Citigroup boosted their price target on shares of Cummins from $280.00 to $300.00 and gave the stock a “buy” rating in a research note on Tuesday. Zacks Investment Research downgraded shares of Cummins from a “buy” rating to a “hold” rating and set a $251.00 price target for the company. in a research note on Thursday, July 15th. Morgan Stanley dropped their price target on shares of Cummins from $264.00 to $252.00 and set an “equal weight” rating for the company in a research note on Wednesday. Finally, Cowen raised shares of Cummins from a “market perform” rating to an “outperform” rating and set a $284.00 price target for the company in a research note on Friday, July 16th. Six equities research analysts have rated the stock with a hold rating and eight have issued a buy rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Buy” and an average target price of $279.31.

Hedge funds and other institutional investors have recently bought and sold shares of the business. CKW Financial Group bought a new stake in Cummins during the second quarter worth $32,000. KB Financial Partners LLC raised its position in shares of Cummins by 47.8% in the second quarter. KB Financial Partners LLC now owns 136 shares of the company’s stock valued at $33,000 after purchasing an additional 44 shares during the period. Kempen Capital Management N.V. increased its position in Cummins by 41.3% during the second quarter. Kempen Capital Management N.V. now owns 154 shares of the company’s stock worth $38,000 after acquiring an additional 45 shares during the period. Liberty Wealth Management LLC increased its position in Cummins by 22,473.8% during the second quarter. Liberty Wealth Management LLC now owns 9,481 shares of the company’s stock worth $39,000 after acquiring an additional 9,439 shares during the period. Finally, Barrett Asset Management LLC bought a new position in Cummins during the second quarter worth about $49,000. 80.40% of the stock is currently owned by hedge funds and other institutional investors.

Shares of NYSE CMI traded up $4.63 during trading on Friday, reaching $236.17. The company had a trading volume of 17,663 shares, compared to its average volume of 1,050,243. The company has a debt-to-equity ratio of 0.41, a quick ratio of 1.19 and a current ratio of 1.81. The stock has a market cap of $33.92 billion, a PE ratio of 15.79, a PEG ratio of 1.27 and a beta of 1.05. The business’s 50 day moving average price is $232.79 and its 200-day moving average price is $244.58. Cummins has a 52 week low of $212.80 and a 52 week high of $277.09.

The firm also recently announced a quarterly dividend, which will be paid on Thursday, December 2nd. Investors of record on Friday, November 19th will be issued a dividend of $1.45 per share. This represents a $5.80 annualized dividend and a yield of 2.46%. The ex-dividend date is Thursday, November 18th. Cummins’s payout ratio is 47.62%.

About Cummins

Cummins, Inc designs, manufactures and markets diesel and natural gas engines. It operates through the following segments: Engine, Distribution, Components, Power Systems, and New Power. The Engine segment manufactures and markets diesel and natural gas powered engines under the Cummins brand name, 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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