$5.05 Billion in Sales Expected for Cummins Inc. (NYSE:CMI) This Quarter

Wall Street analysts expect Cummins Inc. (NYSE:CMI) to report sales of $5.05 billion for the current quarter, according to Zacks Investment Research. Six analysts have made estimates for Cummins’ earnings, with the lowest sales estimate coming in at $4.85 billion and the highest estimate coming in at $5.37 billion. Cummins reported sales of $6.00 billion during the same quarter last year, which indicates a negative year-over-year growth rate of 15.8%. The business is expected to report its next quarterly earnings report on Tuesday, May 5th.

On average, analysts expect that Cummins will report full year sales of $20.86 billion for the current fiscal year, with estimates ranging from $18.81 billion to $21.35 billion. For the next fiscal year, analysts forecast that the business will report sales of $21.36 billion, with estimates ranging from $19.70 billion to $22.66 billion. Zacks’ sales calculations are an average based on a survey of sell-side research analysts that cover Cummins.

Cummins (NYSE:CMI) last issued its quarterly earnings results on Tuesday, February 4th. The company reported $2.56 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.42 by $0.14. Cummins had a net margin of 9.59% and a return on equity of 26.49%. The business had revenue of $5.58 billion for the quarter, compared to analyst estimates of $5.39 billion. During the same period in the previous year, the business posted $3.48 earnings per share. The business’s revenue was down 8.9% compared to the same quarter last year.

Several analysts have issued reports on the stock. Wolfe Research raised shares of Cummins from an “underperform” rating to a “market perform” rating in a report on Friday. Citigroup reduced their price target on shares of Cummins from $180.00 to $160.00 and set a “buy” rating on the stock in a report on Friday, March 13th. ValuEngine raised shares of Cummins from a “sell” rating to a “hold” rating in a report on Thursday, February 6th. Oppenheimer assumed coverage on shares of Cummins in a report on Tuesday, February 4th. They issued a “hold” rating on the stock. Finally, Morgan Stanley reduced their price target on shares of Cummins from $170.00 to $157.00 and set an “equal weight” rating on the stock in a report on Tuesday, March 17th. One research analyst has rated the stock with a sell rating, fourteen have issued a hold rating and eight have assigned a buy rating to the stock. The stock presently has an average rating of “Hold” and an average price target of $175.53.

CMI stock traded down $3.30 during trading on Wednesday, reaching $131.66. 1,267,784 shares of the company were exchanged, compared to its average volume of 2,046,235. Cummins has a 52-week low of $101.03 and a 52-week high of $186.73. The company has a market cap of $20.68 billion, a P/E ratio of 9.14, a PEG ratio of 1.52 and a beta of 1.11. The company has a debt-to-equity ratio of 0.19, a quick ratio of 0.94 and a current ratio of 1.50. The stock’s 50 day moving average price is $148.87 and its 200 day moving average price is $166.77.

Cummins declared that its Board of Directors has approved a stock repurchase program on Tuesday, December 10th that authorizes the company to buyback $2.00 billion in shares. This buyback authorization authorizes the company to buy up to 7.2% of its shares through open market purchases. Shares buyback programs are usually a sign that the company’s board believes its stock is undervalued.

The business also recently declared a quarterly dividend, which was paid on Thursday, March 5th. Investors of record on Friday, February 21st were given a dividend of $1.311 per share. This represents a $5.24 annualized dividend and a yield of 3.98%. The ex-dividend date of this dividend was Thursday, February 20th. Cummins’s dividend payout ratio (DPR) is 34.82%.

In related news, COO Tony Satterthwaite sold 5,395 shares of the company’s stock in a transaction that occurred on Thursday, February 13th. The shares were sold at an average price of $167.75, for a total transaction of $905,011.25. Following the completion of the transaction, the chief operating officer now owns 51,584 shares of the company’s stock, valued at $8,653,216. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Mark J. Osowick sold 438 shares of the stock in a transaction on Friday, February 14th. The stock was sold at an average price of $165.88, for a total transaction of $72,655.44. Following the completion of the sale, the vice president now directly owns 7,392 shares of the company’s stock, valued at approximately $1,226,184.96. The disclosure for this sale can be found here. Insiders have sold 16,280 shares of company stock valued at $2,727,957 in the last ninety days. 0.95% of the stock is currently owned by company insiders.

Several institutional investors have recently added to or reduced their stakes in the company. Wealth Quarterback LLC acquired a new stake in Cummins during the 4th quarter valued at $23,102,111,000. State Street Corp grew its holdings in Cummins by 0.7% during the 3rd quarter. State Street Corp now owns 10,542,424 shares of the company’s stock valued at $1,714,936,000 after purchasing an additional 76,432 shares in the last quarter. Geode Capital Management LLC grew its holdings in Cummins by 1.5% during the 4th quarter. Geode Capital Management LLC now owns 2,772,279 shares of the company’s stock valued at $495,306,000 after purchasing an additional 40,153 shares in the last quarter. Hotchkis & Wiley Capital Management LLC grew its holdings in Cummins by 9.7% during the 4th quarter. Hotchkis & Wiley Capital Management LLC now owns 2,769,641 shares of the company’s stock valued at $495,655,000 after purchasing an additional 244,103 shares in the last quarter. Finally, American International Group Inc. grew its holdings in Cummins by 2,162.4% during the 4th quarter. American International Group Inc. now owns 1,728,050 shares of the company’s stock valued at $309,252,000 after purchasing an additional 1,651,668 shares in the last quarter. 80.49% of the stock is owned by institutional investors.

Cummins Company Profile

Cummins Inc designs, manufactures, distributes, and services diesel and natural gas engines, and engine-related component products worldwide. It operates through four segments: Engine, Distribution, Components, and Power Systems segments. The Engine segment manufactures and markets a range of diesel and natural gas powered engines under the Cummins and other customer brands for the heavy-and medium-duty truck, bus, recreational vehicle, light-duty automotive, construction, mining, marine, rail, oil and gas, defense, and agricultural markets.

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