Cummins (NYSE:CMI) Posts Earnings Results, Beats Estimates By $0.41 EPS

Cummins (NYSE:CMI) announced its earnings results on Thursday. The company reported $5.26 earnings per share for the quarter, topping analysts’ consensus estimates of $4.85 by $0.41, Briefing.com reports. The company had revenue of $8.80 billion for the quarter, compared to analyst estimates of $8.33 billion. Cummins had a return on equity of 25.73% and a net margin of 5.69%. The firm’s quarterly revenue was up 2.3% compared to the same quarter last year. During the same quarter last year, the company earned $5.18 earnings per share. Cummins updated its FY 2024 guidance to EPS.

Cummins Trading Down 5.1 %

CMI traded down $15.73 during midday trading on Friday, hitting $290.36. 1,186,131 shares of the company were exchanged, compared to its average volume of 842,567. The firm has a market capitalization of $39.72 billion, a P/E ratio of 21.26, a P/E/G ratio of 1.93 and a beta of 0.99. Cummins has a 1-year low of $212.80 and a 1-year high of $322.83. The firm’s 50 day moving average price is $280.08 and its 200-day moving average price is $276.66. The company has a quick ratio of 0.84, a current ratio of 1.34 and a debt-to-equity ratio of 0.51.

Cummins Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 5th. Investors of record on Friday, August 23rd will be issued a dividend of $1.82 per share. This is an increase from Cummins’s previous quarterly dividend of $1.68. The ex-dividend date is Friday, August 23rd. This represents a $7.28 annualized dividend and a dividend yield of 2.51%. Cummins’s dividend payout ratio (DPR) is 49.19%.

Insiders Place Their Bets

In related news, VP Jeffrey T. Wiltrout bought 282 shares of the business’s stock in a transaction on Friday, May 24th. The shares were purchased at an average cost of $285.11 per share, with a total value of $80,401.02. Following the acquisition, the vice president now owns 1,262 shares of the company’s stock, valued at $359,808.82. The purchase was disclosed in a filing with the SEC, which is available through this link. In other Cummins news, VP Jeffrey T. Wiltrout bought 282 shares of the stock in a transaction on Friday, May 24th. The stock was acquired at an average cost of $285.11 per share, for a total transaction of $80,401.02. Following the completion of the acquisition, the vice president now owns 1,262 shares in the company, valued at approximately $359,808.82. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Marvin Boakye purchased 1,745 shares of the business’s stock in a transaction on Monday, May 20th. The shares were acquired at an average price of $286.04 per share, for a total transaction of $499,139.80. Following the completion of the acquisition, the vice president now directly owns 1,745 shares in the company, valued at approximately $499,139.80. The disclosure for this purchase can be found here. Company insiders own 0.56% of the company’s stock.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on CMI shares. Raymond James started coverage on Cummins in a research note on Friday, June 28th. They set a “market perform” rating on the stock. The Goldman Sachs Group raised their price objective on Cummins from $270.00 to $306.00 and gave the stock a “neutral” rating in a research note on Tuesday, April 16th. TD Cowen raised their price objective on Cummins from $272.00 to $292.00 and gave the stock a “buy” rating in a research note on Friday, May 10th. Truist Financial lowered their price objective on Cummins from $319.00 to $315.00 and set a “hold” rating on the stock in a research note on Tuesday, July 2nd. Finally, Robert W. Baird raised their price objective on Cummins from $295.00 to $315.00 and gave the stock a “neutral” rating in a research note on Friday. Two investment analysts have rated the stock with a sell rating, five have given a hold rating and six have issued a buy rating to the company. Based on data from MarketBeat.com, Cummins presently has an average rating of “Hold” and a consensus target price of $289.91.

About Cummins

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.