NYSE$CMI

Cummins Inc (Ex. Cummins Engine Inc) · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Cummins reported a decrease in revenue due to lower truck production and weaker demand, but delivered strong profitability supported by cost reduction actions.

Cummins Inc. reported a decrease in first-quarter revenue by 17% to $5.0 billion compared to the same quarter in 2019. The decrease was attributed to lower truck production in North America and weaker demand in global construction, mining, and power generation markets. Net income attributable to Cummins was $511 million ($3.41 per diluted share), compared to $663 million ($4.20 per diluted share) in 2019.

  • First quarter revenues decreased by 17 percent from the same quarter in 2019, totaling $5.0 billion.
  • Net income attributable to Cummins in the first quarter was $511 million ($3.41 per diluted share).
  • EBITDA in the first quarter was $846 million (16.9 percent of sales).
  • The company completed restructuring actions in the quarter that will yield annual cost savings of $250 to $300 million in 2020.

Headline financials

Total Revenue

$5.01B

Previous: $6B-16.5%
EPS (adj)

$3.18

Previous: $4.20-24.3%
EBITDA Margin

16.9%

Previous: 17.2%-1.7%
Capital Expenditures

-$75M

Previous: -$109M+31.2%
Free Cash Flow

$453M

Previous: $560M-19.1%
Net Income

$528M

Previous: $669M-21.1%
Operating Income

$634M

Previous: $799M-20.7%
Gross Profit

$1.29B

Previous: $1.53B-15.5%
Cash & Equivalents

$1.69B

Previous: $1.33B+27.3%
Total Assets

$20.1B

Previous: $19.8B+1.2%
Stock-Based Comp

$4M

Previous: $9M-55.6%

Revenue & EPS history

Cummins · Revenue · Quarterly

$5.01B

Q1 2020-16.5%vs Q1 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Cummins · $6.37B total across 5 segments · Q1 2020

  • Engine
    $2.16B-18.7%
  • Distribution
    $1.81B-9.3%
  • Components
    $1.5B-19.3%
  • Power Systems
    $884M-17.9%
  • Accelera
    $10M

Forward guidance

Due to uncertainty related to the coronavirus pandemic, the company is not providing revenue or profitability guidance for 2020. The company does expect a significant impact to its second quarter results due to disruptions across customer and supplier operations and lower end market demand.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+0.6%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+1.5%

Avg return

30 days after

56%

41 / 73 earnings

Positive

+9.3%

Q3 2024

Best reaction

-10.7%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.0%+3.4%+1.8%
Q4 2025-10.7%-2.9%-11.0%
Q3 2025+5.2%+8.4%+16.3%
Q2 2025+3.2%+7.0%+10.9%
Q1 2025+0.7%+2.3%+7.7%
Q4 2024+4.4%+6.8%-1.0%
Q3 2024+9.3%+9.5%+16.3%
Q2 2024-0.5%+0.2%+7.2%
Q1 2024-1.1%+1.1%-0.8%
Q4 2023+2.9%+4.4%+10.4%
Q3 2023+3.6%+0.7%+3.8%
Q2 2023-9.8%-9.1%-9.8%
Q1 2023-4.3%-3.5%-11.8%
Q4 2022-1.7%-3.6%+0.1%
Q3 2022-1.2%-0.9%+3.5%
Q2 2022-0.0%+1.0%-1.3%
Q1 2022+7.1%+3.5%+8.6%
Q4 2021+0.9%-1.3%-10.8%
Q3 2021-4.0%-3.4%-12.0%
Q2 2021+0.9%+0.0%+3.5%
Q1 2021+2.9%+5.0%+2.9%
Q4 2020-2.5%+4.0%+12.9%
Q3 2020-3.2%-0.4%+4.4%
Q2 2020+4.1%+1.2%+8.8%
Q1 2020+9.1%+4.0%+12.1%
Q4 2019+2.2%-1.3%-8.7%
Q3 2019-3.0%-1.9%+2.7%
Q2 2019-5.7%-8.8%-14.3%
Q1 2019+0.8%+3.1%-3.4%
Q4 2018-0.1%-1.1%+3.2%
Q3 2018+4.0%+8.0%+12.8%
Q2 2018+1.8%+3.2%+3.2%
Q1 2018-8.6%-9.6%-10.9%
Q4 2017-3.5%-8.4%-11.1%
Q3 2017-4.2%-4.0%-7.2%
Q2 2017-6.0%-4.6%-5.1%
Q1 2017+4.8%+2.7%+6.1%
Q4 2016+3.3%+4.3%+4.0%
Q3 2016-4.8%-2.7%+11.6%
Q2 2016+0.4%+2.9%+3.0%
Q1 2016-1.8%
Q4 2015+9.2%
Q3 2015-7.9%
Q2 2015+5.2%
Q1 2015-0.9%
Q4 2014-5.8%
Q3 2014+6.8%
Q2 2014-4.3%
Q1 2014+3.9%
Q4 2013+6.0%
Q3 2013-7.0%
Q2 2013+4.1%
Q1 2013-8.5%
Q4 2012+1.3%
Q3 2012+5.3%
Q2 2012+3.5%
Q1 2012+1.4%
Q4 2011+0.3%
Q3 2011+8.3%
Q2 2011-1.5%
Q1 2011+0.4%
Q4 2010+1.6%
Q3 2010-0.9%
Q2 2010+2.9%
Q1 2009-2.1%
Q1 2010+1.2%
Q4 2007+5.2%
Q4 2009+5.2%
Q3 2008-4.0%
Q3 2009-4.0%
Q2 2009+8.3%
Q2 2008+8.3%
Q4 2008+8.3%

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