Cummins Q1 Earnings Preview and Growth Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy CMI?
Source: seekingalpha
- Earnings Announcement: Cummins is set to release its Q1 2023 earnings on May 5 before market open, with consensus EPS estimate at $5.63 and revenue at $8.37 billion, reflecting a 2.4% year-over-year growth, which could significantly impact stock performance.
- Historical Performance: Over the past year, Cummins has surpassed EPS and revenue estimates 75% of the time, demonstrating robust profitability and market adaptability, thereby boosting investor confidence in its future performance.
- Estimate Revision Trends: In the last three months, EPS estimates have seen five upward and five downward revisions, while revenue estimates have experienced six upward and two downward adjustments, indicating mixed market sentiment regarding Cummins' future earnings potential.
- Long-term Growth Outlook: Cummins projects a revenue growth of 3% to 8% by 2026 while expanding power systems capacity and streamlining Accelera investments, signaling the company's commitment to business expansion and technological innovation in the coming years.
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Analyst Views on CMI
Wall Street analysts forecast CMI stock price to fall
13 Analyst Rating
7 Buy
6 Hold
0 Sell
Moderate Buy
Current: 674.880
Low
540.00
Averages
616.17
High
703.00
Current: 674.880
Low
540.00
Averages
616.17
High
703.00
About CMI
Cummins Inc. is a global power solutions company. Engine segment manufactures and markets a range of diesel and natural gas-powered engines under the Cummins brand name. Components segment designs, manufactures, and supplies products for the Engine and Power Systems segments, including drivetrain and braking systems for commercial diesel, gasoline and natural gas applications, aftertreatment systems, turbochargers, fuel systems, valvetrain technologies, automated transmissions and electronics. Distribution segment includes sales and support of a range of products and services, including power generation systems, high-horsepower engines, heavy-duty and medium-duty engines designed for on- and off-highway use, application engineering services, retail and wholesale aftermarket parts and in-shop and others. Accelera segment designs, manufactures, sells and supports electrified power systems with innovative components and subsystems, including battery and electric powertrain technologies.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Cummins Q1 Earnings Preview and Growth Outlook
- Earnings Announcement: Cummins is set to release its Q1 2023 earnings on May 5 before market open, with consensus EPS estimate at $5.63 and revenue at $8.37 billion, reflecting a 2.4% year-over-year growth, which could significantly impact stock performance.
- Historical Performance: Over the past year, Cummins has surpassed EPS and revenue estimates 75% of the time, demonstrating robust profitability and market adaptability, thereby boosting investor confidence in its future performance.
- Estimate Revision Trends: In the last three months, EPS estimates have seen five upward and five downward revisions, while revenue estimates have experienced six upward and two downward adjustments, indicating mixed market sentiment regarding Cummins' future earnings potential.
- Long-term Growth Outlook: Cummins projects a revenue growth of 3% to 8% by 2026 while expanding power systems capacity and streamlining Accelera investments, signaling the company's commitment to business expansion and technological innovation in the coming years.
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- Performance Analysis: It highlights the performance of CUMMINS in relation to market expectations and the implications for investors.
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- Five-Layer Cake Model: Cramer referenced Nvidia CEO Jensen Huang's five-layer cake model, emphasizing the interdependence of power, semiconductors, hardware, AI models, and application layers, illustrating the complexity and breadth of the AI economy.
- Investment Opportunities: Cramer asserts that the AI boom is not just a tech story but a broad economic transformation, advising investors to focus on S&P index funds and select stocks to capitalize on future investment opportunities.
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The Broad Impact of the AI Economy
- Market Trend Analysis: Jim Cramer highlights that the boom in data centers and artificial intelligence is rapidly expanding, impacting nearly every sector of the market, indicating a strong economic transformation trend.
- Profit Growth Drivers: During the first-quarter earnings season, Cramer notes that companies tied to AI and data centers have achieved significant profit growth, driving major indexes higher and reflecting increased investor confidence in these sectors.
- Five-Layer Cake Model: Cramer references Nvidia CEO Jensen Huang's framework, likening the AI economy to a 'five-layer cake,' emphasizing that various industries from power to semiconductors, hardware, cloud computing, and applications are benefiting from this trend.
- Investment Opportunity Outlook: Cramer stresses that the AI boom is not just a tech story but a broad economic shift, advising investors to focus on S&P index funds and potential high-quality stocks to capitalize on future investment opportunities.
See More
Cummins Q1 2026 Earnings Call Highlights
- Sales Growth: In Q1 2026, Cummins reported sales of $8.4 billion, a 3% increase year-over-year, primarily driven by heightened demand in power generation markets, particularly from data centers, indicating robust performance in key sectors.
- EBITDA Performance: The company achieved an EBITDA of $1.3 billion with a margin of 15.4%, which included a net charge of $199 million related to the sale of its low-pressure fuel cell business, reflecting ongoing operational improvements.
- Outlook Revision: Cummins raised its revenue forecast for 2026 to an increase of 8% to 11%, while reaffirming its North America heavy-duty truck sales forecast of 230,000 to 250,000 units, showcasing a strong recovery in market demand.
- Strategic Adjustments: The completion of the sale of the low-pressure fuel cell business aims to reduce operating losses in the Accelera segment and lays the groundwork for future financial improvements, demonstrating the company's commitment to optimizing its business portfolio.
See More
Cummins Q1 Earnings Preview and Growth Outlook
- Earnings Announcement: Cummins is set to release its Q1 2023 earnings on May 5 before market open, with consensus EPS estimate at $5.63 and revenue at $8.37 billion, reflecting a 2.4% year-over-year growth, which could significantly impact stock performance.
- Historical Performance: Over the past year, Cummins has surpassed EPS and revenue estimates 75% of the time, demonstrating robust profitability and market adaptability, thereby boosting investor confidence in its future performance.
- Estimate Revision Trends: In the last three months, EPS estimates have seen five upward and five downward revisions, while revenue estimates have experienced six upward and two downward adjustments, indicating mixed market sentiment regarding Cummins' future earnings potential.
- Long-term Growth Outlook: Cummins projects a revenue growth of 3% to 8% by 2026 while expanding power systems capacity and streamlining Accelera investments, signaling the company's commitment to business expansion and technological innovation in the coming years.
See More
CUMMINS Q1 EPS REACHES USD 4.71, BELOW IBES ESTIMATE OF USD 5.59
- Economic Indicators: The article discusses the comparison between the CUMMINS Q1 EPS of USD 4.71 and the IBE's estimated EPS of USD 5.59.
- Performance Analysis: It highlights the performance of CUMMINS in relation to market expectations and the implications for investors.
See More
Market Update: Stocks Rise as Oil Prices Fall
- War Ending Anticipation: Stock futures rose as Axios reported that the Iran war may soon end, with the S&P 500 and Nasdaq hitting record highs yesterday, reflecting investor optimism about economic recovery prospects.
- Aerospace Stock Surge: Travel and aerospace stocks are poised to benefit if the war concludes, with Boeing shares up about 4% and Delta Airlines rising 6%, indicating strong market expectations for a rebound in air travel demand.
- Optical Technology Deal: Corning and Nvidia announced a significant deal, with Corning set to build three new plants, increasing its domestic optical manufacturing capacity tenfold, leading to a 15% surge in Corning's stock, highlighting strong demand for optical technology over copper.
- AI Market Growth: AMD's second-quarter guidance exceeded expectations, predicting the server CPU market will reach $120 billion by 2030, with AMD shares soaring 15%, indicating sustained growth in the semiconductor industry driven by AI technology.
See More
AI Economy's Expanding Impact Across Markets
- Market Trend Analysis: Jim Cramer highlights that the boom in data centers and artificial intelligence is rapidly expanding, impacting nearly every corner of the market and indicating strong economic growth potential.
- Profit Explosion: During the first-quarter earnings season, Cramer noted significant profit growth among companies tied to AI and data centers, driving major indexes higher and reflecting strong investor confidence in this sector.
- Five-Layer Cake Model: Cramer referenced Nvidia CEO Jensen Huang's five-layer cake model, emphasizing the interdependence of power, semiconductors, hardware, AI models, and application layers, illustrating the complexity and breadth of the AI economy.
- Investment Opportunities: Cramer asserts that the AI boom is not just a tech story but a broad economic transformation, advising investors to focus on S&P index funds and select stocks to capitalize on future investment opportunities.
See More
The Broad Impact of the AI Economy
- Market Trend Analysis: Jim Cramer highlights that the boom in data centers and artificial intelligence is rapidly expanding, impacting nearly every sector of the market, indicating a strong economic transformation trend.
- Profit Growth Drivers: During the first-quarter earnings season, Cramer notes that companies tied to AI and data centers have achieved significant profit growth, driving major indexes higher and reflecting increased investor confidence in these sectors.
- Five-Layer Cake Model: Cramer references Nvidia CEO Jensen Huang's framework, likening the AI economy to a 'five-layer cake,' emphasizing that various industries from power to semiconductors, hardware, cloud computing, and applications are benefiting from this trend.
- Investment Opportunity Outlook: Cramer stresses that the AI boom is not just a tech story but a broad economic shift, advising investors to focus on S&P index funds and potential high-quality stocks to capitalize on future investment opportunities.
See More
Cummins Q1 2026 Earnings Call Highlights
- Sales Growth: In Q1 2026, Cummins reported sales of $8.4 billion, a 3% increase year-over-year, primarily driven by heightened demand in power generation markets, particularly from data centers, indicating robust performance in key sectors.
- EBITDA Performance: The company achieved an EBITDA of $1.3 billion with a margin of 15.4%, which included a net charge of $199 million related to the sale of its low-pressure fuel cell business, reflecting ongoing operational improvements.
- Outlook Revision: Cummins raised its revenue forecast for 2026 to an increase of 8% to 11%, while reaffirming its North America heavy-duty truck sales forecast of 230,000 to 250,000 units, showcasing a strong recovery in market demand.
- Strategic Adjustments: The completion of the sale of the low-pressure fuel cell business aims to reduce operating losses in the Accelera segment and lays the groundwork for future financial improvements, demonstrating the company's commitment to optimizing its business portfolio.
See More
