The 10-second takeaway
For the quarter ended March 31 (Q1), Cummins met expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share contracted significantly. GAAP earnings per share shrank significantly.
Margins shrank across the board.
Cummins notched revenue of $3.92 billion. The 14 analysts polled by S&P Capital IQ anticipated a top line of $3.97 billion on the same basis. GAAP reported sales were 12% lower than the prior-year quarter's $4.47 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 $1.44. The 19 earnings estimates compiled by S&P Capital IQ predicted $1.86 per share. Non-GAAP EPS of $1.44 for Q1 were 39% lower than the prior-year quarter's $2.38 per share. GAAP EPS of $1.49 for Q1 were 37% lower than the prior-year quarter's $2.38 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 24.4%, 240 basis points worse than the prior-year quarter. Operating margin was 8.5%, 360 basis points worse than the prior-year quarter. Net margin was 7.2%, 300 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $4.24 billion. On the bottom line, the average EPS estimate is $2.16.
Next year's average estimate for revenue is $17.17 billion. The average EPS estimate is $8.77.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cummins is outperform, with an average price target of $127.72.
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