The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Cummins met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share contracted significantly.
Margins dropped across the board.
Cummins tallied revenue of $4.12 billion. The 10 analysts polled by S&P Capital IQ wanted to see sales of $4.11 billion on the same basis. GAAP reported sales were 11% lower than the prior-year quarter's $4.63 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 $1.78. The 18 earnings estimates compiled by S&P Capital IQ forecast $1.90 per share. GAAP EPS of $1.86 for Q3 were 21% lower than the prior-year quarter's $2.35 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 25.3%, 40 basis points worse than the prior-year quarter. Operating margin was 9.7%, 190 basis points worse than the prior-year quarter. Net margin was 8.5%, 130 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $4.08 billion. On the bottom line, the average EPS estimate is $1.95.
Next year's average estimate for revenue is $17.11 billion. The average EPS estimate is $8.70.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cummins is outperform, with an average price target of $107.07.
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