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 -1.04% change in stock price 10 days leading up to the earnings, and a +1.63% change 10 days following the report. On the earnings day itself, the stock moves by +0.95%. This data can give you a slight idea of what to expect for the next quarter's release.
CMI Key Earning Data
CMI Earnings Analysis
Positive
Earnings Performance Exceeds Expectations: Cummins Inc. reported a strong earnings performance with an EPS of $5.96, exceeding expectations of $4.91.
Record EBITDA Performance: The Power Systems segment achieved record performance in both EBITDA dollars and percentage, highlighting operational improvements and strong end markets.
X10 Engine Performance Enhancement: The introduction of the new X10 engine as part of the Cummins HELM platforms is expected to deliver enhanced performance, durability, and efficiency for customers.
Decarbonization Commitment: The acquisition of First Mode assets for retrofit hybrid solutions in mining and rail operations demonstrates Cummins' commitment to innovative decarbonization solutions.
Green Hydrogen Supply Contract: The Accelera by Cummins segment announced a significant supply contract for a 100 megawatt PEM electrolyzer system for bp’s Lingen green hydrogen project, showcasing growth in the green energy sector.
Improved EBITDA Margins: Despite a decrease in overall revenues, the company reported improved EBITDA margins driven by higher power generation and aftermarket volumes, pricing, and operational efficiency.
International Revenue Growth: International revenues, particularly in China, showed growth with a 9% increase driven by strong data center demand and infrastructure projects.
Strategic Financial Resilience: The company is well-positioned strategically and financially to navigate through periods of uncertainty, with a strong leadership team and a focus on customer commitments.
Negative
Trade Tariffs Impact Predictions: Entering unchartered territory due to trade tariffs impacting future performance predictions.
Tariff Impact on Demand: Uncertainty regarding the duration and extent of tariffs could negatively affect demand for capital goods.
North America Truck Market Decline: North America truck market showed softening, with heavy-duty truck production down 18% and medium-duty truck production down 21% compared to 2024 levels.
Revenue Decline Analysis: Overall revenues decreased by 3% compared to the first quarter of 2024, indicating a decline in sales performance.
EBITDA Margin Decline: EBITDA margin decreased significantly from 30.6% to 17.9% year-over-year, reflecting a drop in profitability.
Cash Flow Challenges: Operating cash flow was an outflow of $3 million compared to an inflow of $276 million a year ago, indicating cash flow challenges.
Sales and Revenue Decline: Sales in India decreased by 14%, and power generation revenues also dropped by 11%, reflecting market weakness.
Components Segment Revenue Decline: Components segment revenue decreased by 20%, indicating a significant decline in demand in North America and Europe.
CMI FAQs
How does CMI typically perform around its earnings report dates?
CMI's stock performance around earnings reports can vary, but historical data shows specific patterns, such as a -1.04% change leading up to the report and a +1.63% change in the 10 days following the release.
Is Cummins Inc (CMI) Q1 2025 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
CMI Earning Call Sentiment
Cummins Inc. (NYSE:CMI) Q1 2025 Earnings Call Transcript
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