The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Cummins beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share shrank significantly.
Margins dropped across the board.
Cummins booked revenue of $4.29 billion. The 14 analysts polled by S&P Capital IQ predicted revenue of $4.03 billion on the same basis. GAAP reported sales were 13% lower than the prior-year quarter's $4.92 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 $2.00. The 18 earnings estimates compiled by S&P Capital IQ predicted $1.75 per share. GAAP EPS of $2.02 for Q4 were 29% lower than the prior-year quarter's $2.86 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 24.7%, 50 basis points worse than the prior-year quarter. Operating margin was 9.4%, 200 basis points worse than the prior-year quarter. Net margin was 8.9%, 220 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $4.07 billion. On the bottom line, the average EPS estimate is $1.99.
Next year's average estimate for revenue is $17.62 billion. The average EPS estimate is $9.03.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cummins is outperform, with an average price target of $108.88.
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