Stephen Simpson, CFA
Stephen Simpson, CFA
Stephen Simpson, CFA
Oct. 8, 2013, 12:58 PM
- Clean Energy Fuels (CLNE -8.5%) is added to Piper Jaffray's Top Picks List as a Sell with a new $4.50 price target, cut from $9.50, saying trucking companies overwhelmingly prefer a type of natural gas CLNE doesn't sell.
- The firm's channel checks indicate that more than 90% of engines emerging from the Cummins-Westport (CMI; WPRT) joint venture are opting for compressed natural gas, which fleets can obtain for $1.50/gallon, instead of liquefied natural gas, which CLNE sells for at least $2.75/gallon.
- Also, the firm estimates CLNE will sell only 15M gallons of its Redeem fuel made from landfill gas next year; since CLNE will sell ~299M gallons of fuel in 2014, Redeem will not have a major impact on overall profit margins.
Sep. 18, 2013, 12:34 PM
- Goldman's Jerry Revich tweaks his estimates on Cummins (CMI -0.2%). FY13 and FY14 EPS estimates are now $8.21 and $11.20 respectively, up 3% from previous.
- Conviction List Buy rating is maintained as Revich says the "structural drivers [of the bullish thesis] are intact."
- Catalysts include "US truck engine market share gains, new engine regulations in Europe, and CMI's newly expanded engine product line [which should] provide credible potential for share gains relative to expectations."
- See also: Management shares five year plans for profitable growth
Sep. 3, 2013, 4:24 PM
- Navistar (NAV) says it's expanding its medium-duty engine offerings to include the Cummins (CMI) ISB 6.7-liter engine for International DuraStar medium-duty trucks and IC Bus CE Series school buses.
- The buses with the Cummins ISB will be NAV's first medium-duty vehicles with Selective Catalytic Reduction emissions aftertreatment.
- It will start taking orders immediately, with initial truck builds later this month and regular production scheduled for December.
- Regular production for CE Series school buses is scheduled for late-January 2014.
Aug. 20, 2013, 7:21 AM
- Cummins (CMI) intends to disclose today a deal to supply diesel engines to Nissan (NSANF.PK) for its Titan pickup trucks. Cummins, which already provides Chrysler with engines, earlier said it would announce a project that would create jobs.
- Last year, Nissan sold 21,576 Titans in the U.S. and a handful in Canada and the Middle East; that compares with 1.5M full-size pickups that the Detroit automakers sold in the U.S.
Aug. 20, 2013, 3:56 AM
- The rupee has hit yet another low of 64.175 to the dollar, although the currency is now at 63.565 amid speculation of intervention by the Reserve Bank of India.
- India's Sensex drops again, declining 0.1%, although that's up from earlier lows.
- "The rupee is at risk of completely losing its anchor," says UBS strategist Bhanu Baweja. UBS has predicted a drop to 70 to the dollar, but "no rupee forecast is sacrosanct.
- What investors want is economic reform, not the quasi capital controls that were announced last week.
- "There is no focus on improving productivity, infrastructure or getting FDI (foreign direct investment) back," says Nomura credit analyst Pradeep Mohinan. "It's all about stemming the flow of currency and that is not the cause of the problem."
- Expectations that the Fed will soon start tapering are also hurting the rupee.
- Companies that have been affected by the currency's slide - for better or for worse - include Cummins (CMI), Cognizant Technology Solutions (CTSH), and Starwood Hotels & Resorts Worldwide (HOT).
- ETFs - Stocks: INDY, EPI, PIN, INP, INDA, INXX, SCIF, SCIN, INDL, SMIN. Currency: ICN, INR
Jul. 31, 2013, 2:41 PM
- Goldman's Jerry Revich reiterates a Conviction List-Buy on shares of Cummins (CMI +2.6%) following the company's Q2 results.
- Revich highlights "a $1B new product cycle in CMI's highest margin business" next year, which should "drive significant upside to consensus."
- Other positives include "meaningfully higher Engine profitability despite continued mix headwinds, a high returns Distribution acquisition, and improving Power Generation cost control."
Jul. 30, 2013, 8:29 AM
- Cummins' (CMI) net profit -12% to $414M.
- Sales breakdown: North America +7%, International -4%, due to falling demand in Europe, India, and Mexico, which offset strength in Brazil and China. Engine segment, Cummins' largest product line, -7% to $2.7B.
- Gross margin narrows to 25.5% from 27.2%.
- Expects 2013 sales to be flat vs 2012, an improvement from a prior forecast of unchanged to -5%; and EBIT of 13-14% of sales.
- Shares +2.6% premarket. (PR)
Jul. 30, 2013, 7:32 AM
- Cummins (CMI): Q2 EPS of $2.20 beats by $0.20.
- Revenue of $4.5B (+2% Y/Y) beats by $0.24B. (PR)
Jul. 30, 2013, 12:05 AM
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Jul. 29, 2013, 5:30 PM
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Jun. 27, 2013, 8:39 AM
Procter & Gamble (PG) says it will convert up to 20% of its outsourced truck load shipments to natural gas vehicles within the next two years. Keep an eye on Cummins (CMI), Westport Innovation (WPI), and Navistar (NAV) off the news which bodes well for the sector.| Jun. 27, 2013, 8:39 AM | 6 Comments
Jun. 20, 2013, 8:29 AM
Ryder (R) says it took delivery of 39 light and medium duty compressed vehicles with natural gas engines. The development only marks a small step forward for taking natural gas engines into the mainstream, but could bode well for Westport Innovations (WPRT), Cummins (CMI), and Navistar (NAV) if more commercial operations dabble with CNG-powered vehicles.| Jun. 20, 2013, 8:29 AM | 1 Comment
Jun. 12, 2013, 12:50 PM
Caterpillar's (CAT -0.3%) news that it will be raising its quarterly dividend by 15.4% failed to impress shareholders today, ticking lower since the open. The weakness is surprising given the fact that the hike was above last year's 13% increase and the 4.5% bump the year prior. It also moves the dividend yield to an impressive 2.9%, which is above those of its competitors Deere (DE -0.9%) at 2.4%, Cummins (CMI -0.8%) at 1.7% and Joy Global (JOY +0.2%) at 1.3%.| Jun. 12, 2013, 12:50 PM | 1 Comment
May 15, 2013, 7:27 AMCummins Inc. (CMI) declares $0.50/share quarterly dividend, in line with previous. Forward yield 1.74%. For shareholders of record May 24. Payable June 3. Ex-div date May 22. (PR) | May 15, 2013, 7:27 AM
Apr. 30, 2013, 11:54 AM
More on Cummins' (CMI -5.5%) Q1: Revenues fall 12% Y/Y as "weakness in mining, oil and gas, and power generation" triggers an 18% Y/Y decline in total unit volumes in the engine business. CEO Tom Linebarger calls the weak demand "expected" and says "improving order trends in on-highway and construction markets in North America" should drive revenue improvement in the coming quarters. The company says FY13 revenues will be "flat to down 5%" while EBIT should come in at 13-14% of total sales, but happily notes that Q1 "will mark the low point of the year" for revenues. (PR)| Apr. 30, 2013, 11:54 AM
Apr. 30, 2013, 7:31 AMCummins (CMI): Q1 EPS of $1.49 misses by $0.37. Revenue of $3.9B (-12% Y/Y) misses by $0.07B. (PR) | Apr. 30, 2013, 7:31 AM