Cummins Inc.

(New York Stock Exchange)
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Somewhat Bullish +45

Zacks Research Has Negative View of Cummins FY2027 Earnings

AI-generated analysis

πŸ“‰ Zacks Research lowered FY2027 EPS estimates for Cummins from $33.76 to $33.53 while maintaining a 'Hold' rating.

πŸ“ˆ The company reported Q1 earnings of $6.15 per share, beating analyst expectations of $5.63 by $0.52.

πŸ’° Cummins generated $8.40 billion in quarterly revenue, representing a 2.7% year-over-year increase.

πŸ“Š The firm achieved a net margin of 7.89% and a return on equity of 25.25% during the reported quarter.

🏦 Institutional investors hold 83.46% of the company's outstanding shares as of the latest filing.

πŸ’Έ Insiders sold $9.37 million worth of stock over the last 90 days, including sales by VP Donald G. Jackson and CAO Nicole Lamb-Hale.

πŸ“… Cummins raised its quarterly dividend to $2.20 per share, resulting in an annualized yield of 1.4%.

πŸ“‰ The stock trades at a P/E ratio of 33.61 with a market cap of $89.37 billion.

Bullish Signals
  • Cummins beat quarterly earnings expectations significantly, posting $6.15 EPS versus the consensus of $5.63.
  • Revenue grew by 2.7% year-over-year to reach $8.40 billion in the most recent quarter.
  • The company maintains a healthy return on equity of 25.25% and a net margin of 7.89%.
  • Cummins increased its quarterly dividend from $2.00 to $2.20 per share, signaling confidence in cash flow generation.
Risk Factors
  • Zacks Research analysts lowered their full-year 2027 EPS forecast to $33.53, indicating a slight reduction in expected growth.
  • Insiders have sold a total of 13,579 shares worth $9.37 million over the last 90 days.
Full Analysis
Zacks Research has lowered its full-year 2027 earnings per share (EPS) estimate for Cummins Inc. to $33.53, down from a previous forecast of $33.76, while maintaining a 'Hold' rating on the stock. The analyst team also provided specific forecasts for upcoming quarters in fiscal year 2028, projecting Q4 2027 EPS at $9.03 and full-year 2028 EPS at $39.29. Cummins recently reported strong quarterly results with an EPS of $6.15, which exceeded the consensus estimate of $5.63 by $0.52. The company generated revenue of $8.40 billion, a 2.7% increase year-over-year, and achieved a net margin of 7.89% with a return on equity of 25.25%. These figures indicate solid operational performance despite the analyst downgrade for future years. The stock is currently trading around $647.67 with a market capitalization of $89.37 billion and a P/E ratio of 33.61. Institutional ownership stands at 83.46%, while insiders have sold shares worth over $9.3 million in the last 90 days. Additionally, Cummins announced an increase in its quarterly dividend to $2.20 per share, payable on September 3rd.