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Cummins Inc Q3 profit beats on strong data center demand

By Reuters News


Overview

  • U.S. power solutions maker's Q3 revenue rose 13% yr/yr but missed analyst expectations

  • Q3 adjusted EPS beat analyst expectations

  • Results driven by strong Power Systems demand, especially for data center power generation


Outlook

  • Cummins sees full-year revenue growth of about 10%

  • Company expects full-year EBITDA margin of about 18.2%

  • Company expects Q4 revenue to exceed Q3 and reach a new record


Result Drivers

  • DATA CENTER DEMAND - Co said strong global demand for power generation equipment, especially from data center buildout, drove results

  • TRUCK MARKET MIX - Co said U.S. medium- and heavy-duty truck demand was strong, but pickup truck orders weakened

  • GEOGRAPHIC GROWTH - Co said North America and China contributed to revenue growth


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Sales

Miss

$9.40 bln

$9.85 bln (16 Analysts)

Q3 EPS

Beat

$8.25

$8.20 (17 Analysts)

Q3 Net Income

$1.14 bln

Q3 EBITDA

$1.80 bln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy"

  • Wall Street's median 12-month price target for Cummins Inc is $700.00, about 48.4% above its November 4 closing price of $471.84

  • The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 20 three months ago


Reuters Recommended Reads

  • Nov 3 - Eaton Q3 sales, EPS beat estimates on strong demand

  • Nov 3 - Everus Construction Q3 revenue beats on data center demand

  • Nov 3 - Chipmaker AMD forecasts Q4 revenue above estimates on strong data center demand; shares rise


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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