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Analysts on Wall Street project that Cummins (CMI) will announce quarterly earnings of $4.82 per share in its forthcoming report, representing a decline of 5.5% year over year. Revenues are projected to reach $8.07 billion, declining 4% from the same quarter last year.
Over the last 30 days, there has been a downward revision of 7.1% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
In light of this perspective, let's dive into the average estimates of certain Cummins metrics that are commonly tracked and forecasted by Wall Street analysts.
According to the collective judgment of analysts, 'Net Sales- Distribution' should come in at $2.66 billion. The estimate points to a change of +5.1% from the year-ago quarter.
Analysts forecast 'Net Sales- Accelera' to reach $97.47 million. The estimate indicates a change of +4.8% from the prior-year quarter.
Analysts predict that the 'Net Sales- Engine- Off-highway' will reach $432.45 million. The estimate indicates a change of -0.8% from the prior-year quarter.
The consensus estimate for 'Net Sales- Engine- Medium-duty truck and bus' stands at $956.99 million. The estimate suggests a change of -3.8% year over year.
The average prediction of analysts places 'Net Sales- Engine- Light-duty automotive' at $425.95 million. The estimate indicates a year-over-year change of -2.8%.
Analysts expect 'Net Sales- Engine- Heavy-duty truck' to come in at $1.01 billion. The estimate indicates a year-over-year change of -4.3%.
The collective assessment of analysts points to an estimated 'Net Sales- Power System' of $1.50 billion. The estimate suggests a change of +8% year over year.
The consensus among analysts is that 'Net Sales- Components' will reach $2.85 billion. The estimate indicates a year-over-year change of -14.3%.