The 10-second takeaway
For the quarter ended July 1 (Q2), Cummins met expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share contracted.
Gross margins improved, operating margins contracted, and net margins dropped.
Cummins booked revenue of $4.45 billion. The three analysts polled by S&P Capital IQ foresaw revenue of $4.46 billion on the same basis. GAAP reported sales were 4.1% lower than the prior-year quarter's $4.64 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $2.45. The 18 earnings estimates compiled by S&P Capital IQ anticipated $2.27 per share. GAAP EPS of $2.47 for Q2 were 5.0% lower than the prior-year quarter's $2.60 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 27.0%, 110 basis points better than the prior-year quarter. Operating margin was 11.9%, 70 basis points worse than the prior-year quarter. Net margin was 10.5%, 40 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $4.42 billion. On the bottom line, the average EPS estimate is $2.19.
Next year's average estimate for revenue is $18.12 billion. The average EPS estimate is $9.23.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cummins is outperform, with an average price target of $127.19.
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