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 -0.83% change in stock price 10 days leading up to the earnings, and a +0.76% change 10 days following the report. On the earnings day itself, the stock moves by +0.09%. 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
8.46B
0.30%
-3.87%
Gross Margin
25.30%
4.72%
3.01%
Operating Margin
11.39%
12.55%
6.35%
Net Margin
9.97%
21.88%
16.61%
EPS
5.86
27.67%
11.41%
No Data Available
CMI Earnings Analysis
Cummins Inc. Corporation (CMI.N) Earnings Conference Call
Positive
Quarterly Sales Performance: Sales for the quarter were $8.5 billion, flat compared to the third quarter of 2023, primarily driven by continued high demand in our global power generation markets and improved pricing.
EBITDA Improvement Analysis: EBITDA was $1.4 billion or 16.4% compared to $1.2 billion or 14.6% a year ago, driven by higher power generation volumes, pricing, and operational efficiency.
Distribution Segment Revenue Surge: Third quarter revenue in the Distribution segment increased 16% from a year ago to a record $3 billion, driven by increased demand for power generation products particularly for data center applications.
Power Systems Revenue Surge: Power Systems segment revenues were $1.7 billion, an increase of 17%, and EBITDA increased from 16.2% to 19.4% of sales, driven by higher volumes, particularly in the power generation markets, improved pricing, and operational improvements.
Shareholder Dividend Return: During the quarter, we returned $250 million to shareholders in the form of dividends, consistent with our long-term plan to return approximately 50% of operating cash flow to shareholders.
Negative
Quarterly Sales Performance: Sales for the quarter were $8.5 billion, flat compared to the third quarter of 2023, primarily driven by lower North America heavy-duty truck volumes and the reduction in sales from the separation of Atmus.
North America Revenue Decline: Our third quarter revenues in North America declined 1% to $5.2 billion as a softening heavy-duty market, lower light-duty volumes and a reduction in sales from the Atmus separation were mostly offset by strong demand in the medium-duty truck and power generation markets.
Engine Shipment Decline: We shipped 28,000 engines to Stellantis for use in the RAM pickups in the third quarter of 2024, down 31% from 2023.
India Revenue Decline: Third quarter revenue in India, including joint ventures, was $641 million, a decrease of 12% from the third quarter a year ago, driven by a slowdown in manufacturing and government infrastructure spending.
Revenue and EBITDA Decline: Components revenue was $2.7 billion, a decrease of 16% from the prior year, while EBITDA decreased from 13.6% of sales to 12.9%, driven primarily by the dilutive impact of the Atmus separation and a weaker heavy-duty truck market in North America.
CMI FAQs
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CMI Earning Call Sentiment
Cummins Inc. (CMI) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
CMI.N
-5.11%Positive
The earnings call summary shows strong financial performance with increased EBITDA, gross margins, and net earnings, despite challenges in the heavy-duty truck market. The strategic partnerships and investments in sustainable technology provide a positive outlook. The Q&A section highlights strong momentum in power generation and medium-duty markets, with management focusing on profitability. The raised guidance for medium-duty trucks and power generation further supports a positive sentiment. However, uncertainties in the heavy-duty market slightly temper the outlook, leading to a positive rather than strong positive prediction.