NYSE$CMI

Cummins Inc (Ex. Cummins Engine Inc) · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Cummins' Q3 2021 results were reported, featuring a revenue increase and strong demand across most businesses and regions.

Cummins Inc. reported a 17% increase in third-quarter revenue to $6.0 billion compared to the same quarter in 2020, with net income attributable to Cummins rising to $534 million ($3.69 per diluted share). The company is adjusting its full-year revenue growth forecast to approximately 20% and EBITDA to approximately 15.0% due to ongoing supply chain challenges.

  • Third quarter revenues reached $6.0 billion with a GAAP Net Income of $534 million.
  • Third quarter EBITDA stood at 14.4 percent, with a Diluted EPS of $3.69.
  • Full year 2021 revenue is now expected to increase by approximately 20.0 percent.
  • EBITDA guidance has been lowered to approximately 15.0 percent.

Headline financials

Total Revenue

$5.97B

Previous: $5.12B+16.6%
EPS (adj)

$3.69

Previous: $3.36+9.8%
EBITDA Margin

14.4%

No prior period
Capital Expenditures

-$362M

Previous: -$268M-35.1%
Free Cash Flow

$179M

Previous: $236M-24.2%
Net Income

$541M

Previous: $504M+7.3%
Operating Income

$666M

Previous: $670M-0.6%
Gross Profit

$1.41B

Previous: $1.35B+4.8%
Cash & Equivalents

$2.59B

Previous: $2.97B-12.8%
Total Assets

$23.1B

Previous: $21.6B+6.9%
Stock-Based Comp

$7M

Previous: $10M-30.0%

Revenue & EPS history

Cummins · Revenue · Quarterly

$5.97B

Q3 2021+16.6%vs Q3 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Cummins · $7.62B total across 5 segments · Q3 2021

  • Engine
    $2.6B+23.8%
  • Distribution
    $2B+17.6%
  • Components
    $1.8B+20.0%
  • Power Systems
    $1.2B+22.3%
  • Accelera
    $23M+27.8%

Forward guidance

Cummins is lowering its full year 2021 revenue guidance to be up approximately 20 percent versus last year, compared to prior guidance of up 20 to 24 percent. EBITDA is now expected to be approximately 15.0 percent compared to previous guidance of 15.5 to 16.0 percent of sales due to the ongoing supply chain challenges in our industry.

Tailwinds

  • Company expects to return over 75 percent of Operating Cash Flow to shareholders in 2021 in the form of dividends and share repurchases

Headwinds

  • Lowering full year 2021 revenue guidance to be up approximately 20 percent versus last year, compared to prior guidance of up 20 to 24 percent.
  • EBITDA is now expected to be approximately 15.0 percent compared to previous guidance of 15.5 to 16.0 percent of sales due to the ongoing supply chain challenges in our industry.

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 2021

Historical avgQ3 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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