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.
- 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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- 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.
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- 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.
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- 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.
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