Cummins (NYSE:CMI) Posts Quarterly Earnings Results, Beats Expectations By $1.22 EPS

Key Points

• Cummins reported a quarterly earnings per share (EPS) of $6.43, surpassing analysts' expectations of $5.21 by $1.22.
• The company also achieved a revenue of $8.64 billion, exceeding the forecast of $8.45 billion, despite a 1.7% decline in revenue compared to the same quarter last year.
• Cummins announced an increase in its dividend to $2.00 per share, up from the previous $1.82, reflecting a 2.1% dividend yield and a payout ratio of 36.22%.

Cummins (NYSE:CMI - Get Free Report) issued its earnings results on Tuesday. The company reported $6.43 EPS for the quarter, beating analysts' consensus estimates of $5.21 by $1.22, Zacks reports. The business had revenue of $8.64 billion during the quarter, compared to analyst estimates of $8.45 billion. Cummins had a return on equity of 26.96% and a net margin of 8.72%. Cummins's revenue was down 1.7% on a year-over-year basis. During the same period in the prior year, the company posted $5.26 earnings per share.

Cummins Trading Up 0.4%

Shares of CMI stock traded up $1.35 during trading hours on Thursday, hitting $383.03. The company had a trading volume of 514,195 shares, compared to its average volume of 883,626. The stock has a market capitalization of $52.77 billion, a PE ratio of 18.01, a price-to-earnings-growth ratio of 2.08 and a beta of 1.02. The company has a debt-to-equity ratio of 0.53, a current ratio of 1.64 and a quick ratio of 0.81. The company's fifty day moving average is $337.30 and its 200 day moving average is $331.44. Cummins has a fifty-two week low of $260.02 and a fifty-two week high of $387.90.

Cummins Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 4th. Stockholders of record on Friday, August 22nd will be paid a $2.00 dividend. This is a boost from Cummins's previous quarterly dividend of $1.82. The ex-dividend date of this dividend is Friday, August 22nd. This represents a $8.00 annualized dividend and a dividend yield of 2.1%. Cummins's dividend payout ratio is currently 34.23%.

Insider Buying and Selling

In other Cummins news, Director John H. Stone bought 1,000 shares of the company's stock in a transaction that occurred on Friday, May 16th. The shares were purchased at an average price of $332.08 per share, with a total value of $332,080.00. Following the completion of the acquisition, the director directly owned 2,441 shares of the company's stock, valued at $810,607.28. This represents a 69.40% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. 0.41% of the stock is owned by insiders.

Hedge Funds Weigh In On Cummins

A hedge fund recently raised its stake in Cummins stock. Brighton Jones LLC increased its position in Cummins Inc. (NYSE:CMI - Free Report) by 4.1% during the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 2,112 shares of the company's stock after acquiring an additional 83 shares during the period. Brighton Jones LLC's holdings in Cummins were worth $736,000 as of its most recent SEC filing. Hedge funds and other institutional investors own 83.46% of the company's stock.

Analysts Set New Price Targets

CMI has been the topic of several research reports. The Goldman Sachs Group raised Cummins from a "neutral" rating to a "buy" rating and upped their price objective for the stock from $410.00 to $431.00 in a report on Tuesday, May 27th. Morgan Stanley increased their price target on Cummins from $340.00 to $350.00 and gave the company an "overweight" rating in a research report on Tuesday, May 6th. Evercore ISI reduced their target price on shares of Cummins from $451.00 to $419.00 and set an "outperform" rating for the company in a report on Monday, May 19th. Barclays boosted their price objective on shares of Cummins from $381.00 to $387.00 and gave the company an "equal weight" rating in a report on Monday, July 21st. Finally, Citigroup upped their price target on shares of Cummins from $380.00 to $425.00 and gave the stock a "buy" rating in a report on Wednesday. One analyst has rated the stock with a sell rating, seven have given a hold rating and five have assigned a buy rating to the company. According to MarketBeat.com, Cummins presently has a consensus rating of "Hold" and an average price target of $370.83.

Cummins Company Profile

Cummins Inc designs, manufactures, distributes, and services diesel and natural gas engines, electric and hybrid powertrains, and related components worldwide. It operates through five segments: Engine, Distribution, Components, Power Systems, and Accelera. The company offers diesel and natural gas-powered engines under the Cummins and other customer brands for the heavy and medium-duty truck, bus, recreational vehicle, light-duty automotive, construction, mining, marine, rail, oil and gas, defense, and agricultural markets; and offers parts and services, as well as remanufactured parts and engines.