NYSE$CMI

Cummins Inc (Ex. Cummins Engine Inc) · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Cummins' Q3 2022 earnings were impacted by Meritor acquisition and Filtration business separation.

Cummins reported third quarter revenues of $7.3 billion and GAAP Net Income of $400 million. The results reflect the acquisition of Meritor, costs related to the separation of the Filtration business, and discrete tax items.

  • Third quarter revenues reached $7.3 billion.
  • GAAP Net Income was $400 million, or 5.5 percent of sales, with diluted EPS of $2.82.
  • EBITDA in the third quarter was 12.1 percent of sales.
  • The acquisition of Meritor contributed $737 million in revenue and a GAAP Net Loss of $37 million, or $0.26 per diluted share.

Headline financials

Total Revenue

$7.33B

Previous: $5.97B+22.9%
EPS (adj)

$3.70

Previous: $3.69+0.3%
EBITDA Margin

12.1%

Previous: 14.4%-16.0%
Capital Expenditures

-$453M

Previous: -$362M-25.1%
Free Cash Flow

-$44M

Previous: $179M-124.6%
Net Income

$409M

Previous: $541M-24.4%
Operating Income

$626M

Previous: $666M-6.0%
Gross Profit

$1.64B

Previous: $1.41B+16.1%
Cash & Equivalents

$2.59B

Previous: $2.59B+0.2%
Total Assets

$29.8B

Previous: $23.1B+29.1%
Stock-Based Comp

$10M

Previous: $7M+42.9%

Revenue & EPS history

Cummins · Revenue · Quarterly

$7.33B

Q3 2022+22.9%vs Q3 2021
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

Cummins · $7.72B total across 3 segments · Q3 2022

  • Engine
    $2.78B+6.9%
  • Components
    $2.7B+50.2%
  • Distribution
    $2.24B+11.9%

Forward guidance

Cummins updated its outlook for the full year 2022, excluding the Meritor business.

Tailwinds

  • Full year 2022 revenue guidance is being maintained, with revenue expected to be up 8 percent.
  • The company continues to expect to return approximately 50 percent of Operating Cash Flow to shareholders in 2022 in the form of dividends and share repurchases.

Headwinds

  • Full year 2022 EBITDA is now expected to be approximately 15.0 percent of sales, excluding the Meritor business and related acquisition and integration costs, the impacts of the indefinite suspension of our operations in Russia and the costs associated with preparing for the expected separation of our Filtration business. This is below the company’s previous guidance of approximately 15.5 percent of sales and reflects an improvement from the third quarter to the fourth quarter.

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 2022

Historical avgQ3 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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