Analysts expect that Cummins Inc. (NYSE:CMI) will announce $3.70 earnings per share for the current fiscal quarter, according to Zacks Investment Research. Six analysts have made estimates for Cummins’ earnings, with estimates ranging from $3.51 to $3.90. Cummins posted earnings per share of $2.71 in the same quarter last year, which would suggest a positive year-over-year growth rate of 36.5%. The business is expected to report its next earnings results before the market opens on Tuesday, October 30th.
According to Zacks, analysts expect that Cummins will report full year earnings of $13.26 per share for the current fiscal year, with EPS estimates ranging from $12.90 to $13.67. For the next year, analysts forecast that the company will post earnings of $15.32 per share, with EPS estimates ranging from $14.06 to $16.15. Zacks Investment Research’s earnings per share calculations are an average based on a survey of sell-side research firms that follow Cummins.
Cummins (NYSE:CMI) last posted its quarterly earnings data on Tuesday, July 31st. The company reported $3.32 earnings per share for the quarter, missing the Zacks’ consensus estimate of $3.63 by ($0.31). The company had revenue of $6.13 billion for the quarter, compared to analysts’ expectations of $5.81 billion. Cummins had a return on equity of 26.30% and a net margin of 4.67%. The business’s revenue for the quarter was up 20.8% on a year-over-year basis. During the same period in the previous year, the business posted $2.53 EPS.
CMI has been the subject of several recent research reports. Zacks Investment Research cut shares of Cummins from a “buy” rating to a “hold” rating in a research report on Monday, August 27th. Oppenheimer decreased their price target on shares of Cummins from $168.00 to $192.00 and set an “outperform” rating for the company in a research report on Monday, July 23rd. Mizuho initiated coverage on shares of Cummins in a research report on Friday, June 29th. They issued a “neutral” rating and a $150.00 price target for the company. Stifel Nicolaus set a $156.00 price target on shares of Cummins and gave the company a “buy” rating in a research report on Monday, September 10th. Finally, Citigroup reduced their price objective on shares of Cummins from $160.00 to $150.00 and set a “neutral” rating on the stock in a report on Monday, June 25th. Four investment analysts have rated the stock with a sell rating, fifteen have assigned a hold rating and seven have issued a buy rating to the stock. The stock has a consensus rating of “Hold” and an average price target of $167.48.
In related news, VP Tracy A. Embree sold 462 shares of Cummins stock in a transaction on Monday, August 6th. The shares were sold at an average price of $141.70, for a total transaction of $65,465.40. Following the sale, the vice president now directly owns 4,122 shares in the company, valued at approximately $584,087.40. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Alexis M. Herman sold 735 shares of Cummins stock in a transaction on Friday, August 3rd. The stock was sold at an average price of $139.90, for a total transaction of $102,826.50. The disclosure for this sale can be found here. Insiders have sold a total of 26,087 shares of company stock worth $3,914,211 over the last quarter. 0.67% of the stock is owned by company insiders.
A number of large investors have recently made changes to their positions in CMI. Financial Gravity Wealth Inc. acquired a new stake in Cummins during the 1st quarter worth $400,000. BB&T Securities LLC raised its stake in Cummins by 121.9% during the 1st quarter. BB&T Securities LLC now owns 13,583 shares of the company’s stock worth $2,201,000 after acquiring an additional 7,461 shares in the last quarter. CAMG Solamere Management LLC raised its stake in Cummins by 9.5% during the 1st quarter. CAMG Solamere Management LLC now owns 17,392 shares of the company’s stock worth $2,818,000 after acquiring an additional 1,502 shares in the last quarter. Blair William & Co. IL raised its stake in Cummins by 3.0% during the 1st quarter. Blair William & Co. IL now owns 12,799 shares of the company’s stock worth $2,075,000 after acquiring an additional 375 shares in the last quarter. Finally, The Manufacturers Life Insurance Company raised its stake in Cummins by 15.9% during the 1st quarter. The Manufacturers Life Insurance Company now owns 180,663 shares of the company’s stock worth $29,284,000 after acquiring an additional 24,748 shares in the last quarter. Hedge funds and other institutional investors own 79.26% of the company’s stock.
Shares of NYSE:CMI traded down $0.23 during mid-day trading on Friday, reaching $145.24. 1,794,600 shares of the company were exchanged, compared to its average volume of 1,516,245. The company has a debt-to-equity ratio of 0.19, a quick ratio of 1.03 and a current ratio of 1.61. The stock has a market capitalization of $24.07 billion, a P/E ratio of 13.68, a PEG ratio of 0.84 and a beta of 1.12. Cummins has a 1 year low of $129.90 and a 1 year high of $194.18.
Cummins announced that its Board of Directors has approved a stock buyback program on Tuesday, October 9th that authorizes the company to buyback $2.00 billion in outstanding shares. This buyback authorization authorizes the company to purchase up to 8.3% of its stock through open market purchases. Stock buyback programs are often a sign that the company’s board of directors believes its shares are undervalued.
The company also recently disclosed a quarterly dividend, which will be paid on Monday, December 3rd. Stockholders of record on Thursday, November 15th will be issued a $1.14 dividend. The ex-dividend date is Wednesday, November 14th. This represents a $4.56 dividend on an annualized basis and a dividend yield of 3.14%. Cummins’s payout ratio is 42.94%.
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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