CMI Earnings Prediction
The chart below shows how CMI performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CMI sees a -0.64% change in stock price 10 days leading up to the earnings, and a +1.30% change 10 days following the report. On the earnings day itself, the stock moves by +0.52%. This data can give you a slight idea of what to expect for the next quarter's release.
CMI Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
8.45B
-1.12%
-0.11%
Gross Margin
25.03%
8.64%
-1.07%
Operating Margin
11.35%
26.39%
-0.35%
Net Margin
5.27%
132.31%
-47.14%
EPS
3.02
129.90%
-48.46%
No Data Available
CMI Earnings Analysis
Cummins Inc Corporation (CMI.N) Earnings Conference Call
Positive
Record EPS Achievement: Cummins Inc. reported a record EPS of $5.27 for Q4 2024, exceeding expectations of $4.70, reflecting strong operational performance.
Record Revenue Achievement: Total revenues for 2024 reached a record $34.1 billion, slightly above the previous year, demonstrating resilience despite market challenges.
Record EBITDA Growth: EBITDA for 2024 was a record $6.3 billion, representing 18.6% of sales, significantly up from $3 billion or 8.9% in 2023, driven by higher power generation volumes and operational efficiencies.
Record EBITDA Margin Growth: The Power Systems segment achieved a record EBITDA margin of 18.4% in 2024, up from 14.7% in 2023, fueled by strong demand in power generation markets, particularly data centers.
Shareholder Returns Commitment: Cummins returned $969 million to shareholders in 2024 through dividends and share repurchases, reflecting a commitment to returning cash to investors while maintaining strong financial health.
Negative
Q4 Revenue Decline: Revenues for Q4 2024 totaled $8.4 billion, a decrease of 1% compared to Q4 2023, primarily due to lower North America heavy-duty and pickup truck volumes and the reduction in sales from the separation of Atmus.
Components Revenue Decline: The Components segment reported revenues of $11.7 billion in 2024, which is 13% lower than the prior year, with EBITDA declining to 13.8% of sales compared to 14.4% in 2023.
Strategic Reorganization Charges: The Accelera business segment incurred charges of $312 million in Q4 2024 related to a strategic reorganization, impacting overall profitability.
Revenue Decline Forecast: Projected revenues for 2025 are expected to decline by 2% to 3% compared to 2024, reflecting anticipated weaker demand in the North America on-highway truck markets, particularly in the first half of the year.
Accelera Segment Financial Outlook: The Accelera segment is projected to continue operating at a loss, with expected revenues of $400 million to $450 million in 2025 and net losses reducing to $385 million to $415 million.
CMI FAQs
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CMI Earning Call Sentiment
Cummins Inc. (NYSE:CMI) Q4 2024 Earnings Call Transcript
CMI.N
-5.38%Positive
The earnings call summary indicates strong financial performance with record high EBITDA and improved gross margin. The company maintains revenue guidance and has strategic investments in power generation. The Q&A session revealed positive sentiment from analysts, with a focus on growth and strategic pricing. Despite some uncertainties, such as Accelera's breakeven timeline, the overall outlook and market strategy appear optimistic. Given the company's strong performance and strategic initiatives, the stock price is likely to see a positive movement in the next two weeks.
