NYSE$CMI

Cummins Inc (Ex. Cummins Engine Inc) · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Cummins reported strong profits and record operating cash flow, despite a revenue decrease.

Cummins Inc. reported third-quarter results with revenues of $5.1 billion, a decrease of 11% compared to the same quarter in 2019. However, the company achieved a net income of $501 million and a record quarterly operating cash flow of $1.2 billion.

  • Third quarter revenues were $5.1 billion; GAAP Net Income was $501 million.
  • Third quarter EBITDA was 17.1 percent; Diluted EPS was $3.36.
  • The company produced record quarterly operating cash flow of $1.2 billion.
  • Total liquidity increased to $6.5 billion, including cash and marketable securities of $3.3 billion.

Headline financials

Total Revenue

$5.12B

Previous: $5.77B-11.3%
EPS (adj)

$3.36

Previous: $3.83-12.3%
Capital Expenditures

-$268M

Previous: -$395M+32.2%
Free Cash Flow

$236M

Previous: $221M+6.8%
Net Income

$504M

Previous: $616M-18.2%
Operating Income

$670M

Previous: $699M-4.1%
Gross Profit

$1.35B

Previous: $1.49B-9.7%
Cash & Equivalents

$2.97B

Previous: $1.56B+90.2%
Total Assets

$21.6B

Previous: $20.3B+6.0%
Stock-Based Comp

$10M

Previous: $9M+11.1%

Revenue & EPS history

Cummins · Revenue · Quarterly

$5.12B

Q3 2020-11.3%vs Q3 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Cummins · $6.3B total across 5 segments · Q3 2020

  • Engine
    $2.1B-13.1%
  • Distribution
    $1.7B-15.2%
  • Components
    $1.5B-9.1%
  • Power Systems
    $981M-12.9%
  • Accelera
    $18M

Forward guidance

The company expects fourth quarter revenues to be similar to third quarter levels.

Tailwinds

  • Higher demand in North America truck markets
  • Continued improvement in aftermarket sales

Headwinds

  • Lower demand in China
  • Visibility on future orders remains low
  • The impact of the virus on economies around the world remains difficult to predict

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 Q3 2020

Historical avgQ3 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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