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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
  • 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. 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
  • 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
  • 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
  • Tue, Mar. 24, 7:09 AM
    • Baird lifts its rating on Cummins (NYSE:CMI) to Overweight from Neutral.
    • A price target of $166 is set by Baird on the truck industry manufacturer.
    • The investment firm is calling for the breakout from the tight trading range of Cummuns over the last five months on the strength of the North America truck market.
    • CMI +0.81% premarket.
    | Tue, Mar. 24, 7:09 AM | 3 Comments
  • Mon, Feb. 9, 8:14 AM
    • Susquehanna has downgraded Cummins (NYSE:CMI) to Neutral from Positive and lowered its price target to $148 from $168 citing a more challenging macro environment.
    • The firm sees increased headwinds in power generation, a peaking U.S. Class 8 truck cycle for engines and decelerating components growth.
    • Atlantic Equities has also weighed in on Cummins, downgrading the stock to Neutral from Overweight.
    • CMI -1% premarket
    | Mon, Feb. 9, 8:14 AM | 6 Comments
  • Thu, Feb. 5, 9:16 AM
    • Cummins (NYSE:CMI) -3.6% premarket after Q4 results edged Wall Street estimates, but the diesel engine maker cut its FY 2015 revenue forecast, citing weak demand in international markets and a strong dollar.
    • CMI, which gets more than half its revenue from outside the U.S., now sees full-year revenue growth of 2%-4%, which equates to $19.6B-$20B and below its earlier outlook for $20B-$23B; analysts had been eyeing $20.9B in revenues on 9% growth.
    • The weak forecast overshadows an 11.2% Y/Y gain in Q4 revenue to $5.1B, driven by strong demand for the company's truck engines in North America; revenues for the full year totaled a record $19.2B, up 11% Y/Y, on improving demand in on-highway markets in North America.
    • Says it is maintaining its commitment to return half of operating cash flow to shareholders in 2015.
    | Thu, Feb. 5, 9:16 AM | 3 Comments
  • Tue, Jan. 27, 3:58 PM
    • Cummins (CMI -3.8%) is downgraded to Market Perform from Outperform at First Global despite delivering a respectable performance for the final nine months of 2014.
    • CMI’s industrial engines are highly exposed to the construction and mining industries which are being impacted by weak capital spending in China and other emerging markets, the firm says; also, demand in the Chinese and Brazilian truck markets remains weak.
    • At 13.9x estimated CY 2015 earnings, CMI shares already trade at a moderate premium to peers such as Caterpillar, First Global adds.
    • CMI and other equipment manufacturers are broadly lower following Caterpillar's (CAT -7.2%) disappointing quarter: JOY -5.3%, MTW -5.1%, DE -2.7%, CNHI -1.9%.
    | Tue, Jan. 27, 3:58 PM | 1 Comment
  • Nov. 17, 2014, 8:20 AM
    • A positive article in Barron's on Cummins (NYSE:CMI) appears to be giving the stock a premarket boost.
    • Shares of Cummins could rise by as much as 15% over the next year as its North American market could prove stronger than some expect. In addition to strength in North America, its business abroad could improve, especially in China.
    • In the U.S., a recovering economy, along with tight rail capacity and aging truck fleets, is driving truckers to buy new vehicles. Several analysts think that the order upturn could last at least through 2016.
    • CMI +0.3% premarket
    • Source: Barron's
    | Nov. 17, 2014, 8:20 AM | 1 Comment
  • Oct. 7, 2014, 10:26 AM
    • Cummins (CMI -3.8%), Navistar (NAV -5.3%), and PACCAR (PCAR -1.8%) slide lower in early trading.
    • A decision by Daimler to sell medium-duty engines in the U.S. beginning in 2016 could be a factor.
    • A downgrade on Cummins to Neutral from Buy is also in the mix.
    | Oct. 7, 2014, 10:26 AM | Comment!
  • Sep. 16, 2014, 10:22 AM
    • Cummins (CMI -1.7%) has fallen and can't yet get up as analyst Andrew Casey pulls his Overweight rating and cuts the price target to $145-$148 from $170-$173, citing slower than expected improvement in emerging market demand and power generation. He also sees warranty accrual headwinds in the engines segment.
    | Sep. 16, 2014, 10:22 AM | 2 Comments
  • Jul. 28, 2014, 2:58 PM
    • Cummins (CMI -3.5%) raised its sales outlook for the year but left its profit margin forecast unchanged, underscoring the company's cautious approach to the remainder of the year and sending shares sharply lower.
    • CMI expects sales in China this year to rise 10% after earlier forecasting a 15% increase; however, commercial truck sales in China fell 10% industry-wide during Q2, and CMI expects industry-wide sales of construction excavators to drop 14% this year from 2013.
    • "Demand in the construction market [in China] has softened from already weak levels," CEO Tom Linebarger said during today's earnings conference call. "The pace of investment in infrastructure has not rebounded in China."
    • The CEO also said China's dependence on construction projects to drive economic growth is lessening in the wake of more consumer-driven economic growth.
    | Jul. 28, 2014, 2:58 PM | 2 Comments
Company Description
Cummins Inc designs, manufactures, distributes and services diesel and natural gas engines, electric power generation systems and engine-related component products.