In its upcoming report, Cummins (CMI) is predicted by Wall Street analysts to post quarterly earnings of $5.20 per share, reflecting an increase of 0.8% compared to the same period last year. Revenues are forecasted to be $8.15 billion, representing a year-over-year decrease of 3.5%.
The consensus EPS estimate for the quarter has undergone a downward revision of 0.8% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
Bearing this in mind, let's now explore the average estimates of specific Cummins metrics that are commonly monitored and projected by Wall Street analysts.
Based on the collective assessment of analysts, 'Net Sales- Power System' should arrive at $2.00 billion. The estimate points to a change of +14.5% from the year-ago quarter.
It is projected by analysts that the 'Net Sales- Engine' will reach $2.44 billion. The estimate indicates a change of -10.2% from the prior-year quarter.
Analysts expect 'Net Sales- Components' to come in at $2.29 billion. The estimate indicates a year-over-year change of -13.4%.
The consensus among analysts is that 'Net Sales- Distribution' will reach $3.16 billion. The estimate indicates a change of +3% from the prior-year quarter.
The consensus estimate for 'Net Sales- Accelera' stands at $104.75 million. The estimate indicates a year-over-year change of +4.8%.
The collective assessment of analysts points to an estimated 'Net Sales- Engine- Off-highway' of $425.25 million. The estimate indicates a change of +2.5% from the prior-year quarter.
Analysts forecast 'Net Sales- Engine- Medium-duty truck and bus' to reach $867.64 million. The estimate indicates a year-over-year change of -15.3%.
Analysts predict that the 'Net Sales- Engine- Heavy-duty truck' will reach $883.14 million. The estimate suggests a change of -9.9% year over year.
Analysts' assessment points toward 'Unit shipments - Engine - Light-duty' reaching 30,275 . Compared to the current estimate, the company reported 36,000 in the same quarter of the previous year.
According to the collective judgment of analysts, 'Unit shipments - Engine - Heavy-duty' should come in at 25,661 . The estimate is in contrast to the year-ago figure of 29,400 .
The average prediction of analysts places 'Unit shipments - Engine - Medium-duty' at 64,426 . Compared to the present estimate, the company reported 75,700 in the same quarter last year.
The combined assessment of analysts suggests that 'Unit shipments - Engine - Total' will likely reach 120,362 . The estimate is in contrast to the year-ago figure of 141,100 .
View all Key Company Metrics for Cummins here>>>
Cummins shares have witnessed a change of +10.9% in the past month, in contrast to the Zacks S&P 500 composite's +0.7% move. With a Zacks Rank #3 (Hold), CMI is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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Cummins Inc. (CMI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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