Cummins stock falls after profit declines, while revenue rises above forecasts

- Advertisement -


Shares of Cummins Inc. CMI,
+3.03%
fell 2.0% in premarket trading Tuesday, after the diesel and natural gas engines and new power company reported first-quarter profit that fell, weighed by costs associated with the suspension of its Russia operations. Net income declined to $418 million, or $2.92 a share, from $603 million, or $4.07 a share, in the year-ago period. The results include costs of $1.03 a share related to the suspension of Russia operations and 9 cents a share related to the separation of the filtration business. The FactSet consensus for earnings per share was $3.55. Sales grew 4.8% to $6.39 billion, beating the FactSet consensus of $6.02 billion. Among Cummins’ business segments, engine, distribution, components and power systems beat expectations while new power missed. Gross margin slipped to 24.0% from 24.4%. For 2022, the company raised its revenue growth guidance to 8% from 6%, while the FactSet sales consensus of $25.52 billion implies 6.2% growth. The stock has dropped 14.2% over the past three months through Monday, while the S&P 500 SPX,
+0.57%
has slipped 7.2%.

- Advertisement -

,

- Advertisement -

Credit: www.marketwatch.com /

- Advertisement -

Stay on top - Get the daily news in your inbox

DMCA / Correction Notice

Recent Articles

Related Stories

Stay on top - Get the daily news in your inbox