Cummins Inc. (CMI): Can The Company Still Grow in a Sluggish Economy?

Page 1 of 2

Cummins Sales GuidanceOn Tuesday, Cummins Inc. (NYSE:CMI) will release its latest quarterly results. The key to making smart investment decisions on stocks reporting earnings is to anticipate how they’ll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you’ll be less likely to make an uninformed knee-jerk reaction to news that turns out to be exactly the wrong move.

Cummins Inc. (NYSE:CMI) has long been a go-to provider of engines and related components for a variety of industrial purposes, especially heavy-duty trucks, buses, and other heavy equipment. The company has gotten a lot of attention lately for its natural-gas-powered engine technology, which aims to help its customers take advantage of low nat-gas prices. Let’s take an early look at what’s been happening with Cummins Inc. (NYSE:CMI) over the past quarter and what we’re likely to see in its quarterly report.

Stats on Cummins

Analyst EPS Estimate $1.86
Change From Year-Ago EPS (22%)
Revenue Estimate $3.97 billion
Change From Year-Ago Revenue (11.3%)
Earnings Beats in Past 4 Quarters 4

Source: Yahoo! Finance.

How will Cummins keep growing this quarter?
Analysts have gotten less optimistic about Cummins Inc. (NYSE:CMI)’ earnings prospects in recent months, cutting a dime off their earnings-per-share call for the just-ended quarter and reducing full-year 2013 estimates by $0.25 per share. That has helped contribute to a 3% drop for the stock since late January despite a broad rise in the overall stock market.

The Motley Fool named Cummins Inc. (NYSE:CMI) the best company in America based on its focus on engine solutions that balance the needs of its customers against the good of society. Cummins has made a viable business model out of developing high-performance engines that nevertheless provide fuel efficiency and reliability while producing less pollution. Just last month, Cummins announced a deal with Eaton Corporation, PLC Ordinary Shares (NYSE:ETN) to produce a heavy-truck powertrain package to improve fuel economy by 3% to 6%.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!