NYSE$CMI

Cummins Inc (Ex. Cummins Engine Inc) · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Cummins' Q2 2020 results were impacted by COVID-19 related customer shutdowns and weak economic activity, leading to lower demand in most end markets and regions except China.

Cummins Inc. reported a 38% decrease in second quarter revenues to $3.9 billion compared to the same quarter in 2019. Net income attributable to Cummins was $276 million ($1.86 per diluted share), compared to $675 million ($4.27 per diluted share) in 2019.

  • Second quarter revenues were $3.9 billion; GAAP Net Income was $276 million.
  • Second quarter EBITDA was 14.3 percent; Diluted EPS was $1.86.
  • The company ended the quarter with cash, cash equivalents and marketable securities of $2.1 billion and committed borrowing capacity of $3.5 billion.
  • The company’s long-term credit ratings remained unchanged at A+ from Standard & Poor’s and A2 from Moody’s with stable outlooks

Headline financials

Total Revenue

$3.85B

Previous: $6.22B-38.1%
EPS (adj)

$1.95

Previous: $4.27-54.3%
EBITDA Margin

14.3%

No prior period
Capital Expenditures

-$152M

Previous: -$242M+37.2%
Free Cash Flow

$117M

Previous: $443M-73.6%
Net Income

$269M

Previous: $685M-60.7%
Operating Income

$336M

Previous: $848M-60.4%
Gross Profit

$890M

Previous: $1.64B-45.8%
Cash & Equivalents

$1.75B

Previous: $1.4B+25.3%
Total Assets

$20.3B

Previous: $20.3B+0.3%
Stock-Based Comp

$8M

Previous: $19M-57.9%

Revenue & EPS history

Cummins · Revenue · Quarterly

$3.85B

Q2 2020-38.1%vs Q2 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Cummins · $4.99B total across 5 segments · Q2 2020

  • Distribution
    $1.6B-20.6%
  • Engine
    $1.4B-32.5%
  • Components
    $1.2B-14.3%
  • Power Systems
    $777M+7.3%
  • Accelera
    $10M

Forward guidance

The company currently expects third quarter revenues to improve from second quarter levels, however, there remains significant uncertainty around how COVID-19 will impact end market demand as well as customer and supplier operations. Due to this uncertainty the company is not providing full year revenue or profitability guidance for 2020.

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 Q2 2020

Historical avgQ2 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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