NYSE$CMI

Cummins Inc (Ex. Cummins Engine Inc) · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Cummins' first quarter results were reported, with revenues increasing and full-year revenue guidance raised.

Cummins Inc. reported a strong first quarter with revenues of $6.1 billion, a 22% increase from the same quarter in 2020. The company raised its full-year 2021 revenue guidance due to stronger demand across all markets.

  • First quarter revenues reached $6.1 billion, with a GAAP net income of $603 million.
  • EBITDA for the first quarter was 16.1 percent, with diluted EPS of $4.07.
  • Full year 2021 revenue guidance was raised to an increase of 20 to 24 percent.
  • The company is focused on mitigating supply chain challenges to fulfill end-user demand.

Headline financials

Total Revenue

$6.09B

Previous: $5.01B+21.6%
EPS (adj)

$4.07

Previous: $3.18+28.0%
Capital Expenditures

-$87M

Previous: -$75M-16.0%
Free Cash Flow

$524M

Previous: $453M+15.7%
Net Income

$611M

Previous: $528M+15.7%
Operating Income

$810M

Previous: $634M+27.8%
Gross Profit

$1.49B

Previous: $1.29B+14.8%
Cash & Equivalents

$2.96B

Previous: $1.69B+74.9%
Total Assets

$23B

Previous: $20.1B+14.4%
Stock-Based Comp

$8M

Previous: $4M+100.0%

Revenue & EPS history

Cummins · Revenue · Quarterly

$6.09B

Q1 2021+21.6%vs Q1 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Cummins · $7.5B total across 5 segments · Q1 2021

  • Engine
    $2.46B+13.9%
  • Components
    $2.15B+43.3%
  • Distribution
    $1.84B+1.2%
  • Power Systems
    $1.02B+15.6%
  • Accelera
    $35M+250.0%

Forward guidance

Cummins is raising its full year 2021 revenue guidance to 20 to 24 percent, an increase from 8 to 12 percent due to stronger demand across all markets. EBITDA is expected to be in the range of 15.5 to 16.0 percent, an increase from the prior range of 15.0 and 15.5 percent of sales, primarily due to increased demand.

Tailwinds

  • Stronger demand across all markets.
  • EBITDA is expected to be in the range of 15.5 to 16.0 percent.
  • Company expects to return 75 percent of Operating Cash Flow to shareholders.
  • Optimistic that continued vaccination distribution globally will reduce the impact of the virus in the second half of the year.
  • Cummins is in a strong position to keep investing in future growth.

Headwinds

  • Risk of an increase in cases and the potential for new virus variants that could result in lower customer demand.
  • Potential for additional facility shutdowns.
  • Potential for additional supply chain constraints in the future.
  • Pace of recovery has placed a strain on global supply chains leading to increased costs.
  • Shortage of key components such as semiconductor chips has been the primary challenge.

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 2021

Historical avgQ1 2021

+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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