NYSE$CMI

Cummins Inc (Ex. Cummins Engine Inc) · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Cummins reported solid profitability and record operating cash flow.

Cummins Inc. reported a 15% increase in third-quarter revenues to $8.4 billion compared to the same quarter in 2022. Net income attributable to Cummins was $656 million, or $4.59 per diluted share, compared to $400 million, or $2.82 per diluted share in 2022. The company is raising its full year 2023 revenue guidance to be up 18 to 21 percent.

  • Third quarter revenues reached $8.4 billion, with a GAAP net income of $656 million.
  • EBITDA for the third quarter was 14.6 percent of sales, and diluted EPS was $4.59.
  • Third quarter results included $26 million, or $0.14 per diluted share, in costs related to the separation of Atmus Filtration Technologies Inc.
  • Third quarter net cash provided by operating activities was a record $1.5 billion.

Headline financials

Total Revenue

$8.43B

Previous: $7.33B+15.0%
EPS (adj)

$4.73

Previous: $3.70+27.8%
EBITDA Margin

14.6%

Previous: 12.1%+20.7%
Capital Expenditures

-$694M

Previous: -$453M-53.2%
Free Cash Flow

-$4M

Previous: -$44M+90.9%
Net Income

$690M

Previous: $409M+68.7%
Operating Income

$950M

Previous: $626M+51.8%
Gross Profit

$2.07B

Previous: $1.64B+26.1%
Cash & Equivalents

$2.39B

Previous: $2.59B-7.9%
Total Assets

$32.1B

Previous: $29.8B+7.8%

Revenue & EPS history

Cummins · Revenue · Quarterly

$8.43B

Q3 2023+15%vs Q3 2022
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

Cummins · $10.1B total across 5 segments · Q3 2023

  • Components
    $3.2B+18.4%
  • Engine
    $2.9B+4.4%
  • Distribution
    $2.5B+11.7%
  • Power Systems
    $1.4B
  • Accelera
    $103M

Forward guidance

Cummins is raising its full year 2023 revenue guidance to be up 18 to 21 percent. EBITDA is expected to be in the range of 15.2 to 15.4 percent of sales.

Tailwinds

  • Raising full year 2023 revenue guidance to be up 18 to 21 percent.
  • Strong demand across most markets, especially North America.
  • EBITDA is expected to be in the range of 15.2 to 15.4 percent of sales.
  • The company plans to continue to generate strong operating cash flow and returns for shareholders
  • Committed to long-term strategic goal of returning 50 percent of operating cash flow back to shareholders.

Headwinds

  • Seeing some signs of slowing activity.
  • Expecting lower demand in the fourth quarter.
  • Focus on reinvesting for profitable growth in the near term.
  • Focusing on increasing dividends in the near term.
  • Focusing on reducing debt in the near term.

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 2023

Historical avgQ3 2023

+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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