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, 8:10 AM
- Net income grew 6% to $471M, or $2.62 per diluted share vs. $446M, or $2.43 per diluted share in the second quarter of 2014.
- Revenue by segment: Engine +2%; Distribution +21%; Components +9%; Power Generation +1%.
- Returned $517M to shareholders in the form of dividends and share repurchases during the quarter.
- The company still expects full year 2015 revenues to grow between 2%-4%, and EBIT in the range of 13.5%-14% of sales.
- Q2 results
- CMI +4.3% premarket
Tue, Jul. 28, 7:32 AM
Mon, Jul. 27, 5:30 PM
- AGCO, AHGP, AIXG, AKS, ALLY, AMG, ARG, ARLP, ARW, AUDC, AUO, AXE, BP, BTU, CIT, CMI, CNC, CNX, COMM, CPLA, CRY, CVLT, CYNO, DD, DHI, DHX, ECL, F, FBC, FCH, FDP, FMER, FSS, GLW, GPN, GRUB, ICLR, IPGP, IPI, IR, JBLU, JEC, KEM, LH, LPT, LYB, MAS, MMC, MRK, MZOR, NCI, NLSN, NOV, NTLS, OAK, OFC, PCAR, PCH, PCP, PFE, POR, RAI, RDWR, SALT, SIR, SIRI, ST, SVU, TXT, UPS, UTHR, WAT, WDR, WYN
Thu, Jul. 23, 7:35 PM
- Caterpillar (NYSE:CAT) fell 3.5% in today's trade after cutting revenue guidance for the year during its Q2 earnings report while noting a "relatively stagnant" global economy.
- With sales running at ~25% below the level of three years ago, analysts in today's earnings call asked CEO Doug Oberhelman if he thought deeper cost cuts are needed; while the CEO promised to slash spending if the global economy gets much worse, he said CAT wants to retain enough capacity so it can be ready to take advantage of an eventual recovery.
- Oberhelman tries to see the bright side of things: Companies continue to reduce spending on equipment, maintenance and even spare parts, so CAT's mining "trucks and ancillary equipment are being used longer and longer and longer," meaning the miners will have to buy new trucks at some point.
- Sales will heavily depend on what happens to the global economy, but CFO Brad Halverson says if CAT's forecast of lower H2 sales proves accurate, it would be the first time since the 1930s the company has suffered three straight years of decline.
- Wells Fargo keeps its Market Perform rating on CAT while saying the demand trends indicated by the company may have a negative implications for Cummins (NYSE:CMI), Terex (NYSE:TEX) and Deere (NYSE:DE).
Tue, Jun. 30, 11:07 AM
- After nearly thirty years with the Company, Cummins (CMI +0.5%) Chief Technical Officer John Wall has decided to retire.
- Under Wall's leadership, diesel engine emissions technology advanced significantly at the company, evolving into a key competitive advantage for Cummins.
- Jennifer Rumsey, Vice President of Engineering for Cummins' Engine Business, will take his place.
Fri, Jun. 19, 11:26 AM
- The EPA and NHTSA have published a new set of rules covering fuel efficiency on medium and heavy duty vehicles built for the model year 2018 and beyond.
- The agencies forecast the program will cut greenhouse gas emissions by 1B metric tons and lower fuel costs by $170B for the lifetime of the vehicles manufactured under the program.
- Though the release of tighter emission rules has been widely anticipated, perhaps a bigger surprise this week was the strong statement made by Pope Francis on the global need to address climate control.
- The number of companies that could ultimately be impacted by the proposed changes if they are enacted spread across various sectors.
- Joint EPA/NHTSA proposal (.pdf)
- Encyclical letter from Pope Francis (.pdf)
- Related stocks: KNX, PTSI, ODFL, JBHT, R, SWFT, CNW, GM, F, OTCPK:DDAIF, NAV, OTCPK:VOLVY, CMI, PCAR, FDX, UPS, HTZ, TM,
Fri, Jun. 19, 10:09 AM
- The EPA is expected to announce a new set of rules today covering medium and heavy trucks built in the model year 2019.
- The administration aims to improve fuel efficiency with larger-sized trucks accounting for 20% of all emissions in the transportation sector off a mark of 4% of vehicles on the road.
- The new rules could also cover light-duty pickup trucks, buses, and delivery vehicles.
- Related stocks: KNX, PTSI, ODFL, JBHT, R, SWFT, CNW, GM, F, OTCPK:DDAIF, NAV, OTCPK:VOLVY, CMI, PCAR.
Mon, May 18, 3:03 PM
- Goldman's sees the S&P 500 hitting a mid-year high of 2,150 by mid-year, but fading to 2,100 by year-end after the Fed hikes rates. Its 12-month forecast of 2,125 stands against the current level of 2,130.
- With appreciation returns expected to be nil, Goldman suggests having a look at its dividend growth portfolio - a sector-neutral basket of 50 stocks. They have a median yield of 2.5% and are expected to boost payouts by 16% this year and 12% in 2016. The group's P-E ratio is 15 vs. 17.3 for the S&P 500.
- The ten highest-yielding additions: Harley-Davidson (NYSE:HOG) - with a 2.3% yield, Home Depot (NYSE:HD) - 2.1%, Dr. Pepper Snapple (NYSE:DPS) - 2.5%, National Oilwell Varco (NYSE:NOV) - 3.6%, Regions Financial (NYSE:RF) - 2.3%, Baxter International (NYSE:BAX) - 3.1%, Cummins (NYSE:CMI) - 2.4%, Seagate Technology (NASDAQ:STX) - 3.9%, International Paper (NYSE:IP) - 3.1%, AES Corp (NYSE:AES) - 3%.
- Looking over a ten-year horizon, Goldman expects dividends to account for 46% of the S&P 500's 5% annualized return, up from 20% during the current bull market which started in 2009.
- ETFs: DVY, SCHD, ADX, SDOG, DLN, DHS, FDL, DTD, FVD, DVYL, SDYL
Tue, May 12, 3:19 PM
Tue, Apr. 28, 7:51 AM
- Net income grew 14% to $387M, or $2.14 per diluted share vs. $338M, or $1.83 per diluted share in the first quarter of 2014.
- Revenue by segment: Engine +1%; Distribution +2%; Components +6%; Power Generation +6%.
- Repurchased 1M shares during the quarter.
- "We expect profitability for the remainder of the year to increase from first quarter levels as revenues improve and we capture more benefits from cost reduction activities," CEO Tom Linebarger said.
- The company expects full year 2015 revenues to grow between 2%-4%, and EBIT in the range of 13.5%-14% of sales.
- Q1 results
- CMI +0.9% premarket
Tue, Apr. 28, 7:31 AM
Mon, Apr. 27, 5:30 PM
- AET, AGCO, AIXG, AKS, ALLY, AMG, AUDC, AUO, AXE, BMY, BP, BSX, CARB, CAS, CBR, CIT, CMI, CNC, CNX, COH, CPLA, CRY, DFRG, DORM, ECL, ENTG, ETR, F, FBC, FDP, FLWS, FMER, GAS, GLW, GPI, HMC, HSP, ICLR, IDXX, IIVI, IPGP, IPI, JBLU, JEC, LRN, LXK, MAS, MDXG, MHFI, MRGE, MRK, NCI, NEO, NOV, OFC, OSK, PAG, PFE, PH, PHG, POR, SALT, SC, SIR, SIRI, ST, SVU, TMUS, TXT, UBSI, UPS, UTHR, VDSI, VLO, WAT, WDR, WHR, WWW, WYN, XRS, YNDX
Wed, Apr. 15, 2:27 PM
- Cummins (CMI +0.5%) is higher despite a downgrade to Hold from Buy at Stifel, which believes that several factors including declining Class 8 equipment orders, lower than anticipated market share in the Class 8 market, and continued international headwinds, may hit investor sentiment and continue to pressure the stock.
- Stifel believes monthly Class 8 equipment orders could slow more than the seasonal norm this springs-summer, driven by historically large OEM backlogs and dwindling available build slots remaining in 2015.
Wed, Apr. 8, 10:16 AM
- Cummins (CMI -0.6%) is downgraded to Neutral from Buy with a $155 price target at Goldman Sachs, which points to a sustained multi-year downturn for capital goods demand in commodity exporting countries.
- Goldman sees an increasingly challenging multi-year outlook for South America, Asia and Middle East machinery demand, while CMI’s $2.5B U.S. product cycle that had been central to the firm's positive view has been largely realized.
- The firm likes CMI’s $500M product cycle in China where the Foton Cummins JV is in the early stages of displacing third-party engines, but it believes the U.S. market share risk-reward appears balanced.
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.
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