The 10-second takeaway
For the quarter ended June 30 (Q2), Cummins beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly. GAAP earnings per share dropped.
Margins shrank across the board.
Cummins reported revenue of $4.53 billion. The 16 analysts polled by S&P Capital IQ hoped for revenue of $4.25 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $2.20. The 19 earnings estimates compiled by S&P Capital IQ anticipated $2.00 per share. GAAP EPS of $2.20 for Q2 were 11% lower than the prior-year quarter's $2.47 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 25.5%, 170 basis points worse than the prior-year quarter. Operating margin was 11.1%, 100 basis points worse than the prior-year quarter. Net margin was 9.1%, 140 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $4.33 billion. On the bottom line, the average EPS estimate is $2.11.
Next year's average estimate for revenue is $17.06 billion. The average EPS estimate is $7.93.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cummins is outperform, with an average price target of $123.88.
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