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Anticipating Key Insights from Cummins’ Upcoming Earnings Announcement

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Upcoming Earnings Announcement: Cummins Inc. Poised for Growth

Cummins Inc. (CMI), boasting a market cap of $45.6 billion, stands out as a top global designer, manufacturer, and distributor of diesel and natural gas engines, along with powertrain components like fuel systems, turbochargers, and transmissions. The company is based in Columbus, Indiana, and has a wide network to serve original equipment manufacturers (OEMs), distributors, and dealers. On Tuesday, November 5, Cummins is set to release its fiscal third-quarter earnings for 2024.

Analyst Expectations for Q3 Earnings

As the announcement approaches, analysts anticipate CMI will report earnings of $4.89 per share on a diluted basis, reflecting a 3.4% increase from $4.73 per share during the same period last year. In the past year, the company has had a mixed performance, missing consensus estimates in two out of four quarters while exceeding them in the other two. Notably, in the most recent quarter, CMI surpassed the EPS consensus estimate by 8.5%, fueled by strong sales in North America.

Full-Year Earnings Forecast

For the entire fiscal year, analysts project that CMI will achieve earnings per share (EPS) of $19.96, up 1.4% from $19.69 in 2023.

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Stock Performance Over 52 Weeks

CMI shares have experienced significant growth, increasing 50.9% in the past year. This performance surpasses the S&P 500’s 38.5% gains and falls in line with the 38.9% returns of the Industrial Select Sector SPDR Fund (XLI) over the same period.

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Driving Innovation and Demand

Cummins has successfully leveraged strong demand and a commitment to innovation, resulting in impressive price momentum. The company’s focus on technological advancement has enhanced its product range and strengthened its position within the industry.

Recent Earnings Report and Market Response

On August 1, CMI stock rose 4.9% following the announcement of solid second-quarter earnings. The company recorded a profit of $726 million, or $5.26 per share, exceeding the expected $4.85 per share. Additionally, with revenue reaching $8.8 billion, Cummins surpassed analysts’ forecast of $8.28 billion.

Analyst Ratings and Price Targets

Current opinions among analysts on CMI stock are mixed, leading to a neutral “Hold” rating overall. Out of 17 analysts covering the stock, four rate it as a “Strong Buy,” one suggests a “Moderate Buy,” ten give a “Hold” rating, one recommends a “Moderate Sell,” and one advises a “Strong Sell.”

The average price target for Cummins stands at $333.57, signaling a slight potential increase from current trading levels.

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On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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