NYSE$CMI

Cummins Inc (Ex. Cummins Engine Inc) · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Cummins' first quarter results were announced, showing increased revenues and solid profitability despite supply chain challenges and costs associated with suspending operations in Russia.

Cummins reported a 5% increase in first-quarter revenues to $6.4 billion, driven by strong demand in North America. Net income was $418 million, impacted by costs related to the suspension of operations in Russia and the separation of the Filtration business. The company is raising its full-year revenue guidance to up 8 percent.

  • First quarter revenues reached $6.4 billion, with a GAAP net income of $418 million.
  • EBITDA was 11.8 percent of sales, and diluted EPS was $2.92.
  • Results include $158 million in costs related to the suspension of operations in Russia and $17 million related to the separation of the Filtration business.
  • Full year 2022 revenue guidance raised to up 8 percent, while maintaining EBITDA guidance of approximately 15.5 percent.

Headline financials

Total Revenue

$6.39B

Previous: $6.09B+4.8%
EPS (adj)

$4.04

Previous: $4.07-0.7%
EBITDA Margin

11.8%

No prior period
Capital Expenditures

-$104M

Previous: -$87M-19.5%
Free Cash Flow

$319M

Previous: $524M-39.1%
Net Income

$423M

Previous: $611M-30.8%
Operating Income

$604M

Previous: $810M-25.4%
Gross Profit

$1.53B

Previous: $1.49B+3.1%
Cash & Equivalents

$2.59B

Previous: $2.96B-12.4%
Total Assets

$24.1B

Previous: $23B+5.1%
Stock-Based Comp

$5M

Previous: $8M-37.5%

Revenue & EPS history

Cummins · Revenue · Quarterly

$6.39B

Q1 2022+4.8%vs Q1 2021
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Cummins · $6.86B total across 3 segments · Q1 2022

  • Engine
    $2.75B+12.0%
  • Distribution
    $2.12B+15.4%
  • Components
    $1.99B-7.6%

Forward guidance

Cummins is raising its full year 2022 revenue guidance to up 8 percent. Full-year 2022 EBITDA is expected to be approximately 15.5 percent.

Tailwinds

  • Stronger demand in North America
  • Strong demand in other markets
  • Company plans to return approximately 50 percent of Operating Cash Flow to shareholders
  • Company plans to return cash in the form of dividends
  • Company plans to return cash in the form of share repurchases

Headwinds

  • Ongoing impact of COVID-19, especially in China
  • Effect of the conflict in Ukraine continue to present challenges to our global operations
  • Global supply chain challenges
  • Expenses associated with the separation of the Filtration business have been excluded from the outlook provided
  • Expenses associated with the indefinite suspension of our operations in Russia have been excluded from the outlook provided

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 2022

Historical avgQ1 2022

+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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