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Chief Predictions for Cummins' (CMI) Q4 Earnings Release
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Cummins Inc. (CMI - Free Report) is slated to release fourth-quarter 2021 results on Feb 3, before the opening bell. The Zacks Consensus Estimate for the quarter’s earnings and revenues is pegged at $3.08 per share and $5.78 billion, respectively.
The Zacks Consensus Estimate for Cummins’ fourth-quarter earnings per share has been revised downward by 6 cents to $3.08 in the past 30 days. The bottom-line projection implies a year-over-year decline of 8.3%.
Cummins posted lower-than-expected earnings in the last reported quarter amid weaker-than-anticipated contribution from Components and New Power segments. Over the trailing four quarters, Cummins beat estimates on three occasions and missed on the other, with the average surprise being 8.02%.
Let’s see how things have shaped up prior to fourth-quarter 2021 results.
Earnings Whispers
Our proven model predicts an earnings beat for Cummins for the to-be-reported quarter, as it has the right combination of the two key ingredients. A combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: Cummins has an Earnings ESP of +1.26%. This is because the Most Accurate Estimate of $3.12 per share is pegged 4 cents higher than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Technology leadership, impressive product portfolio, strong geographic diversification and broad global distribution network are expected to aid Cummins’ fourth-quarter 2021 results. Higher year-over-year demand for Cummins’ products in North America and international markets is likely to have aided revenues during the to-be-reported quarter.
Here’s a rundown of fourth-quarter revenue and EBITDA estimates for Cummins’ segments.
The Zacks Consensus Estimate for Cummins’ Engine segment’s quarterly net sales is pegged at $2,429 million, suggesting an increase from the year-ago quarter’s $2,329 million. However, the consensus mark for EBITDA is $305 million, implying a yearly decline of 9.7%.
For the December-end quarter, the Zacks Consensus Estimate for the Distribution segment’s net sales is $2,015 million, indicating a decline from the last quarter’s $1,996 million. The same for the segment’s EBITDA is $169 million, indicating an increase from the year-ago reported figure of $165 million.
For the quarter under discussion, the Zacks Consensus Estimate for net sales from the Power System segment is $1,118 million, suggesting an uptick from $989 million recorded in fourth-quarter 2020. The consensus mark for the segment’s EBITDA is $114 million, calling for an increase from $74 million reported in the corresponding quarter of 2020.
The Zacks Consensus Estimate of $1,760 million for the Components segment’s quarterly net sales calls for a decrease from the year-ago quarter’s $1,831 million. The consensus estimate for the segment’s EBITDA is $227 million, which indicates a decline from $280 million recorded in fourth-quarter 2020.
For the New Power Segment, the consensus estimate for pretax loss is pegged at $31.5 million, indicating an improvement from the year-ago reported loss of $51 million.
While higher year-over-year projected EBITDA from Distribution and Power Systems segments is likely to have buoyed Cummins’ performance, an estimated decline in pretax income from Engine and Components segments might dent overall results. Also, high capex and R&D expenses incurred by Cummins in an effort to ramp up its capabilities in fuel cell and hydrogen production technology might have acted as spoilsports.
Other Stocks With Favorable Combination
Here are a few other stocks in the auto sector that are worth considering, as these too have the right combination of elements to come up with an earnings beat this time around:
O'Reilly Automotive (ORLY - Free Report) has an Earnings ESP of +1.72% and a Zacks Rank #3. The stock is set to report fourth-quarter 2021 earnings on Feb 9.
The Zacks Consensus Estimate for O’Reilly’s to-be-reported quarter’s earnings and revenues is pegged at $5.96 per share and $3.07 billion, respectively. ORLY surpassed earnings estimates in the trailing four quarters, with the average being 16.8%.
BorgWarner (BWA - Free Report) has an Earnings ESP of +3.92% and a Zacks Rank #3. The stock is set to report fourth-quarter 2021 earnings on Feb 15.
The Zacks Consensus Estimate for BorgWarner’s to-be-reported quarter’s earnings and revenues is pegged at 74 cents per share and $3.46 billion, respectively. BWA surpassed earnings estimates in the trailing four quarters, with the average being 30.9%
Allison Transmission Holdings (ALSN - Free Report) has an Earnings ESP of +1.45% and a Zacks Rank of 3. The company is set to announce quarterly figures on Feb 16.
The Zacks Consensus Estimate for Allison’s to-be-reported quarter’s earnings and revenues is pegged at 92 cents per share and $598 million, respectively. ALSN surpassed earnings estimates in three of the preceding four quarters and missed on the other, delivering an average surprise of 3.9%.
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Chief Predictions for Cummins' (CMI) Q4 Earnings Release
Cummins Inc. (CMI - Free Report) is slated to release fourth-quarter 2021 results on Feb 3, before the opening bell. The Zacks Consensus Estimate for the quarter’s earnings and revenues is pegged at $3.08 per share and $5.78 billion, respectively.
The Zacks Consensus Estimate for Cummins’ fourth-quarter earnings per share has been revised downward by 6 cents to $3.08 in the past 30 days. The bottom-line projection implies a year-over-year decline of 8.3%.
Cummins posted lower-than-expected earnings in the last reported quarter amid weaker-than-anticipated contribution from Components and New Power segments. Over the trailing four quarters, Cummins beat estimates on three occasions and missed on the other, with the average surprise being 8.02%.
Let’s see how things have shaped up prior to fourth-quarter 2021 results.
Earnings Whispers
Our proven model predicts an earnings beat for Cummins for the to-be-reported quarter, as it has the right combination of the two key ingredients. A combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: Cummins has an Earnings ESP of +1.26%. This is because the Most Accurate Estimate of $3.12 per share is pegged 4 cents higher than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Cummins carries a Zacks Rank of 3, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors at Play
Technology leadership, impressive product portfolio, strong geographic diversification and broad global distribution network are expected to aid Cummins’ fourth-quarter 2021 results. Higher year-over-year demand for Cummins’ products in North America and international markets is likely to have aided revenues during the to-be-reported quarter.
Here’s a rundown of fourth-quarter revenue and EBITDA estimates for Cummins’ segments.
The Zacks Consensus Estimate for Cummins’ Engine segment’s quarterly net sales is pegged at $2,429 million, suggesting an increase from the year-ago quarter’s $2,329 million. However, the consensus mark for EBITDA is $305 million, implying a yearly decline of 9.7%.
For the December-end quarter, the Zacks Consensus Estimate for the Distribution segment’s net sales is $2,015 million, indicating a decline from the last quarter’s $1,996 million. The same for the segment’s EBITDA is $169 million, indicating an increase from the year-ago reported figure of $165 million.
For the quarter under discussion, the Zacks Consensus Estimate for net sales from the Power System segment is $1,118 million, suggesting an uptick from $989 million recorded in fourth-quarter 2020. The consensus mark for the segment’s EBITDA is $114 million, calling for an increase from $74 million reported in the corresponding quarter of 2020.
The Zacks Consensus Estimate of $1,760 million for the Components segment’s quarterly net sales calls for a decrease from the year-ago quarter’s $1,831 million. The consensus estimate for the segment’s EBITDA is $227 million, which indicates a decline from $280 million recorded in fourth-quarter 2020.
For the New Power Segment, the consensus estimate for pretax loss is pegged at $31.5 million, indicating an improvement from the year-ago reported loss of $51 million.
While higher year-over-year projected EBITDA from Distribution and Power Systems segments is likely to have buoyed Cummins’ performance, an estimated decline in pretax income from Engine and Components segments might dent overall results. Also, high capex and R&D expenses incurred by Cummins in an effort to ramp up its capabilities in fuel cell and hydrogen production technology might have acted as spoilsports.
Other Stocks With Favorable Combination
Here are a few other stocks in the auto sector that are worth considering, as these too have the right combination of elements to come up with an earnings beat this time around:
O'Reilly Automotive (ORLY - Free Report) has an Earnings ESP of +1.72% and a Zacks Rank #3. The stock is set to report fourth-quarter 2021 earnings on Feb 9.
The Zacks Consensus Estimate for O’Reilly’s to-be-reported quarter’s earnings and revenues is pegged at $5.96 per share and $3.07 billion, respectively. ORLY surpassed earnings estimates in the trailing four quarters, with the average being 16.8%.
BorgWarner (BWA - Free Report) has an Earnings ESP of +3.92% and a Zacks Rank #3. The stock is set to report fourth-quarter 2021 earnings on Feb 15.
The Zacks Consensus Estimate for BorgWarner’s to-be-reported quarter’s earnings and revenues is pegged at 74 cents per share and $3.46 billion, respectively. BWA surpassed earnings estimates in the trailing four quarters, with the average being 30.9%
Allison Transmission Holdings (ALSN - Free Report) has an Earnings ESP of +1.45% and a Zacks Rank of 3. The company is set to announce quarterly figures on Feb 16.
The Zacks Consensus Estimate for Allison’s to-be-reported quarter’s earnings and revenues is pegged at 92 cents per share and $598 million, respectively. ALSN surpassed earnings estimates in three of the preceding four quarters and missed on the other, delivering an average surprise of 3.9%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.