Markets
CMI

Cummins (CMI) Q4 Earnings Miss Estimates, Fall 18.4% Y/Y

A generic image of a stock chart.
Credit: Shutterstock photo

Cummins Inc.CMI is a leading global designer, manufacturer and distributor of diesel and natural gas engines, electric power generation systems, and engine-related components, fuel systems, controls and air handling systems. Cummins is poised to benefit from its innovative products. Further, Cummins' Distribution segment is poised to gain from the acquisitions in North America.

However, Cummins operates in a highly competitive environment. Cummins is facing a challenging situation due to sluggish global markets, which is considerably affecting its results. Global off-highway and power generation markets are also under pressure with no sign of improvement.

Estimate Trend & Surprise History

Investors should note that the fourth-quarter earnings estimate for Cummins has decreased over the past 7 days.

The company has delivered mixed earnings surprises. It has beaten the Zacks Consensus Estimate in 2 of the trailing 4 quarters with an average miss of around 4.00%. Thus, investors have been eagerly awaiting Cummins' latest earnings report.

We have highlighted some of the key stats from this just-revealed announcement below:

Earnings

Cummins' earnings decreased 18.4% to $2.09 per share in the fourth quarter of 2015, missing the Zacks Consensus Estimate of $2.12.

Revenues

Cummins reported revenues of $4.8 billion, down 6% year over year. However, revenues surpassed the Zacks Consensus Estimate of $4.71 billion. The year-over-year decline was due currency headwinds mainly driven by stronger US dollar.

Key Stats/Developments to Note

For 2016, Cummins anticipates revenues to decline by 5% to 9% and EBIT is expected in the range of 11.6%-12.2%.

Zacks Rank

Currently, Cummins has a Zacks Rank #5 (Strong Sell), but that could change following its earnings report which has just released.

Market Reaction

Cummins' share price was inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.

Check back later for our full write up on Cummins' earnings report!

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

CUMMINS INC (CMI): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

CMI

Other Topics

Earnings Investing Stocks

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More