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
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.
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%.
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
Oct. 7, 2014, 10:26 AM
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.
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. 9, 2014, 7:33 AM| 4 Comments
Jul. 8, 2014, 2:42 PM| 5 Comments
Jul. 3, 2014, 12:58 PM
- Cummins (CMI +2.6%) is reiterated with a Buy rating but with a raised $170 target price at Argus, which expects the diesel engine manufacturer to benefit from the macro trend of rising fuel costs and the regulatory trend of increasingly strict environmental rules, both in the U.S. and overseas (Briefing.com).
- Argus also sees strong demand for CMI's products from truck and machinery manufacturers, driven in part by infrastructure development in emerging markets.
- Yesterday, Americas Commercial Transportation Research reported better than expected May orders for the industry's Class 8 truck segment.
Apr. 29, 2014, 8:49 AM
- Cummins (CMI) +3.4% premarket after easily beating expectations for Q1 earnings and revenue, as strong demand for its engines and vehicle components in North America offset weakness in many other parts of the world.
- Raises its FY 2014 guidance, seeing revenues rising 6%-10% vs. its previous forecast of 4%-8% growth, due largely to improving demand in North America; expects EBIT of 12.75%-13.25% of sales.
- Engine sales rose 11% Y/Y to $2.6B, driven by stronger demand in on-highway markets in North America; components sales jumped 21% to $1.2B.
Mar. 31, 2014, 10:45 AM
- Cummins (CMI +2.3%) is initiated with a Buy rating and $162 price target at Argus, which cites the company's high-quality, fuel-efficient engines, and expects CMI to continue to benefit from rising fuel costs and increasingly strict environmental regulations in the U.S. and overseas.
- The firm expects 2014 U.S. earnings to be driven by steady growth in the engine segment, as more truck manufacturers upgrade to low-emission, fuel-efficient engines, and sees growth from acquisitions in the distribution segment, with most of the impact coming in H2 of this year.
Feb. 7, 2014, 2:16 PM
- Cummins (CMI +2.2%) climbs for a second straight day as Wells Fargo upgrades the diesel and natural gas engine manufacturer to Outperform from Market Perform and raises its valuation range to $168-$171 from $133-$136.
- The firm cites the likely completion of a multiple-year cycle of guidance cuts, anticipated positive inflection in end-market demand, above-market growth, improved cost structure and management’s 2014 commitment to return $1B to shareholders as reasons for the upgrade.
- Shares began their turnaround yesterday after CMI's earnings call offered solid guidance for 2014 engine markets: heavy-duty truck revenue up 6% and shipments up 5%, with NAFTA Class 8 heavy-duty truck build expected at 236K units; medium-duty truck and bus revenue up 15%, with North America truck shipments up 19%.
Feb. 6, 2014, 8:57 AM
- Cummins (CMI) -2.9% premarket even after posting better than expected Q4 earnings and revenue, but the world's largest engine manufacturer based on sales offered a disappointing outlook.
- CMI expects 2014 revenue to rise 4%-8% Y/Y, but analysts had forecast revenue growth of 11%.
- Q4 North American revenue rose 3%, but was offset by international revenue, which slipped 4% from sales declines in Mexico, India, Australia and Europe.
- In the engine segment, sales gained 2% to $2.56B because of strong demand for construction equipment in international markets and increased demand for medium duty trucks in North America.
- Components sales climbed 21% on higher demand in on-highway markets in North America, Europe and China.
Jan. 27, 2014, 12:14 PM
- Caterpillar managed to burn the shorts with Q4 results today - with big expense cuts and a new $10B buyback program - but other global growth bellwethers are having none of it. Joy Global (JOY -0.8%) and Cummins (CMI -1.3%) have given back early gains to turn solidly lower and Deere (DE +0.1%) is barely hanging on.
- "Despite our expectation that mine production will continue to increase, we expect mining companies to further reduce their capital expenditures in 2014 ... we're expecting sales in resource industries to decline modestly."
Dec. 16, 2013, 2:39 PM
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