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Cummins Inc. (CMI)

  • Tue, Nov. 10, 12:24 PM
    • Challenging conditions in a number of important markets are expected to have 2016 revenues coming in at least 5% below the 2015 level, says Cummins (CMI -1.7%) at its analyst day.
    • The company sets a new $1B repurchase plan to start upon completion of the current $1B program (launched in July 2014).
    • Analyst day webcast
    • Source: Press Release
    | Tue, Nov. 10, 12:24 PM | 7 Comments
  • Wed, Oct. 28, 12:24 PM
    • Morgan Stanley slashes its rating on Cummins (CMI -0.8%) to Sell after the company warned of a global slowdown in its Q3 earnings report and plunged to a new 52-week low.
    • Analyst Nicole DeBlase and her team write that while the market is finally starting to understand the cyclical headwinds Cummins faces, its future looks even rockier than the stock reflects at the present.
    • "We believe CMI is facing three major headwinds that will drive share price underperformance...the secular growth story within the Components business...the NAFTA Engine business is likely to suffer from market share erosion...and consensus forecasts do not yet reflect the full impact of a NAFTA truck industry downturn."
    • DeBlase downgraded CMI shares from Equal Weight to Underweight, and lowered her target price to $79, about 22.5% lower than Cummins' current price.
    | Wed, Oct. 28, 12:24 PM | 14 Comments
  • Tue, Oct. 27, 11:25 AM
    • Select vehicle stocks are weaker after Paccar (PCAR -5.9%) fell short of revenue estimates with Q3 earnings and Cummins (CMI -8.5%) warned on demand trends in Brazil and China.
    • Paccar reported deliveries to the U.S. and Canada were up 3% during the quarter. New truck deliveries to Europe increased 11%. The story at Cummins was darker as revenue guidance was dropped.
    • There's a bit of a contagion effect as truck, heavy-duty machinery, and RV sellers such as Navistar (NAV -13.2%), Winnebago (WGO -3.5%), Thor Industries (THO -1.6%), Caterpillar (CAT -0.8%), Manitowoc (MTW -3.6%), Polaris Industries (PII -0.8%), Arctic Cat (ACAT -4.6%), and Spartan Motors (SPAR -4.3%) are all weaker.
    • Ford is also down off after an earnings miss and GM issued another million-car plus recall.
    • Previously: Ford Motor misses by $0.02, beats on revenue (Oct. 27 2015)
    • Previously: GM recalls 1.4M older vehicles due to fire risk (Oct. 27 2015)
    | Tue, Oct. 27, 11:25 AM | Comment!
  • Tue, Oct. 27, 9:17 AM
    | Tue, Oct. 27, 9:17 AM | Comment!
  • Tue, Oct. 27, 7:52 AM
    • Net income fell 10% to $380M, or $2.14 per diluted share vs. $423M, or $2.32 per diluted share in the third quarter of 2014.
    • Revenue by segment: Engine -10%; Distribution +20%; Components -4%; Power Generation -13%.
    • Expects to reduce its professional workforce by up to 2,000 people in order to lower costs.
    • "We are disappointed with our results in the third quarter, but we are responding quickly to softening demand," COO Rich Freeland said.
    • The company now expects full-year 2015 revenue to be flat to down two percent, compared to prior guidance of growth between two and four percent.
    • Q3 results
    • CMI -7.7% premarket
    | Tue, Oct. 27, 7:52 AM | 17 Comments
  • Tue, Oct. 27, 7:33 AM
    • Cummins (NYSE:CMI): Q3 EPS of $2.14 misses by $0.46.
    • Revenue of $4.6B (-5.9% Y/Y) misses by $310M.
    • Press Release
    | Tue, Oct. 27, 7:33 AM | 1 Comment
  • Mon, Oct. 26, 5:30 PM
  • Tue, Oct. 20, 10:27 AM
    • UBS has lowered its rating on Cummins (CMI +0.4%) to Neutral from Buy after the firm's quarterly truck survey indicated moderating strength in North American truck demand.
    • A 10%-20% decline in Class 8 production is possible, making share outperformance less likely, analyst Steven Fisher tells investors in a research note.
    • The stock's price target has been cut to $111 from $150.
    | Tue, Oct. 20, 10:27 AM | 10 Comments
  • Tue, Oct. 13, 3:11 PM
    | Tue, Oct. 13, 3:11 PM | Comment!
  • Tue, Oct. 6, 12:58 PM
    • Westport Innovations (WPRT +6%) says the new ISL G Near Zero NOx natural gas engine, created through its joint venture with Cummins (CMI +0.9%), has become the first MidRange engine in North America to receive emission certifications from both the U.S. EPA and California's Air Resources Board to meet Near Zero NOx Emissions standards for medium-duty truck, urban bus, school bus and refuse applications.
    • The venture says exhaust emissions will be 90% lower than the current EPA NOx limit of 0.2 g/bhp-hr and meets 2017 EPA greenhouse gas emission requirements.
    | Tue, Oct. 6, 12:58 PM | 10 Comments
  • Thu, Oct. 1, 11:57 AM
    • Truck maker stocks trade at a wider discount to the S&P 500 on a key valuation measure, according to analysis from Bloomberg Intelligence.
    • The group's 12-month P-E ratio of 9.122 is a 40% discount to the S&P 500 blended mark of 15.117. The gap was 28% in June.
    • Bloomberg notes the group typically trades at a discount to the S&P 500 due to seasonal cycles.
    • Related stocks: CMI, NAV, OSK, OTCPK:VOLVY, PCAR, OTCPK:DDAIF.
    | Thu, Oct. 1, 11:57 AM | 7 Comments
  • Mon, Sep. 28, 11:48 AM
    • Cummins (CMI -2.8%) is downgraded to Hold from Buy at BB&T Capital, which believes the best case scenario for CMI is for 2016 earnings to come in flattish, and would not be surprised to see a Y/Y decline next year due to a decelerating North America truck cycle, continued headwinds in industrial markets, and CMI's international exposure (~37% of revenue).
    • The firm thinks Q3 2015 may be respectable, but its 2016 estimate goes to $10.35 vs. the $10.77 consensus, and firm's 2017 estimate goes to $10.45 vs. the $11.83 consensus.
    • While CMI has an upcoming analyst day on Nov. 10, the firm considers it unlikely that CMI will announce a major buyback and expects a more bearish tone when the company reports Oct. 27 given that select markets have decelerated materially.
    | Mon, Sep. 28, 11:48 AM | 5 Comments
  • Fri, Sep. 25, 11:20 AM
    • Barclays analyst Robert Wertheimer begins coverage of the U.S. machinery sector with a negative view, seeing consensus estimates too high across the board with revenue for the current cycle already peaking for most of the sector.
    • The analyst expects a sharper than expected downturn for North American trucks, with another peak level eight years away; the tractor supercycle is only two years in a downturn, while the prior two supercycles saw seven consecutive down years in machinery sales, Wertheimer says.
    • Of the 15 companies in the firm's sector coverage universe, only two are rated Overweight: United Rentals (URI +1.5%) and Allison Transmission (ALSN +0.4%).
    • Started with Equal Weight ratings: Actuant (ATU -1.2%), AGCO (AGCO +1%), Caterpillar (CAT -1%), Joy Global (JOY -2.9%), Lincoln Electric (LECO -0.8%), Manitowoc (MTW -1.9%), Terex (TEX -0.7%) and WABCO (WBC -1.2%).
    • Rated Underweight: Deere (DE -0.3%), CNH Industrial (CNHI +1.5%), Cummins (CMI -0.8%), PACCAR (PCAR -1%) and Navistar (NAV -2.9%).
    | Fri, Sep. 25, 11:20 AM | 15 Comments
  • Thu, Sep. 24, 11:22 AM
    • Caterpillar's (CAT -6.3%) latest woes are wreaking havoc on other machinery stocks, including Deere (DE -3.4%), Joy Global (JOY -2.4%), Cummins (CMI -2.8%) and Terex (TEX -5.6%).
    • CAT said today it is lowering its sales outlook for the year and will cut as many as 5K jobs between now and the end of 2016, and that sales and revenue could drop in 2016 for a record fourth straight year.
    • Earlier this week, CAT gave its latest update on three-month rolling sales figures, which have now declined for 33 straight months.
    | Thu, Sep. 24, 11:22 AM | 13 Comments
  • Tue, Sep. 22, 12:19 PM
    • Cummins (CMI -2.4%) and Allison Transmission (ALSN -4.6%) are downgraded to Hold from Buy at Deutsche Bank, which says 2016 estimates for the two companies are too optimistic and do not fully discount potential headwinds.
    • Deutsche Bank analysts say Off-Highway estimates need to be revised down to reflect the lower commodity price environment, and that the North America On-Highway cycle may have peaked, which is not reflected in Wall Street estimates.
    • The firm cuts its price target for CMI to $123 from $154 and for ALSN to $28 from $38.
    | Tue, Sep. 22, 12:19 PM | 3 Comments
  • Tue, Jul. 28, 10:10 AM
    • Trucking stocks are broadly higher in early trading with manufacturers and suppliers both participating in the mini-rally.
    • Positive Class 8 truck sales data and a strong report from PACCAR are helping to boost confidence.
    • Gainers: PACCAR (NASDAQ:PCAR) +1.39%, Navistar (NYSE:NAV) +1.51%, Daimler (OTCPK:DDAIF) +1.31%, Cummins (NYSE:CMI) +3.19%, Volkswagen (OTCQX:VLKAY) +2.06%, Wabash National (NYSE:WNC) +1.40%, Oshkosh (NYSE:OSK) +1.32%.
    | Tue, Jul. 28, 10:10 AM | 3 Comments
Company Description
Cummins Inc designs, manufactures, distributes and services diesel and natural gas engines, electric power generation systems and engine-related component products.