NYSE$CMI

Cummins Inc (Ex. Cummins Engine Inc) · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Reported flat revenue and decreased net income due to supply chain constraints.

Cummins reported flat fourth-quarter revenues compared to the same period last year, while net income decreased. The company faced significant supply chain constraints, leading to elevated costs and impacting margins. Full year revenues reached a record $24 billion, but fourth-quarter performance was affected by industry challenges.

  • Fourth quarter revenues were $5.9 billion, flat compared to 2020.
  • Net income attributable to Cummins for the fourth quarter was $394 million ($2.73 per diluted share), compared to $501 million ($3.36 per diluted share) in 2020.
  • Full year revenues reached $24 billion, a 21 percent increase from 2020.
  • The company expects full year 2022 revenues to be up 6 percent.

Headline financials

Total Revenue

$5.85B

Previous: $5.83B+0.3%
EPS (adj)

$2.85

Previous: $3.36-15.2%
EBITDA Margin

12.1%

Previous: 14.4%-16.0%
Effective Tax Rate

22.2%

No prior period
Capital Expenditures

$372M

Previous: $260M+43.1%
Free Cash Flow

$360M

Previous: $882M-59.2%
Net Income

$394M

Previous: $501M-21.4%
Operating Income

$495M

Previous: $629M-21.3%
Gross Profit

$1.32B

Previous: $1.36B-3.2%
Cash & Equivalents

$2.59B

Previous: $3.4B-23.8%
Total Assets

$23.7B

Previous: $22.6B+4.8%
Stock-Based Comp

$12M

Previous: $9M+33.3%

Revenue & EPS history

Cummins · Revenue · Quarterly

$5.85B

Q4 2021+0.3%vs Q4 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Cummins · $7.33B total across 5 segments · Q4 2021

  • Engine
    $2.43B+5.5%
  • Distribution
    $2.06B+2.9%
  • Components
    $1.73B-4.1%
  • Power Systems
    $1.09B+9.8%
  • Accelera
    $34M+0.0%

Forward guidance

Cummins projects full year 2022 revenues to be up 6 percent, and EBITDA to be approximately 15.5 percent of sales. Revenue is expected to increase in all regions and major markets except China.

Tailwinds

  • Full year 2022 revenues are projected to increase by 6 percent.
  • EBITDA is expected to be approximately 15.5 percent of sales for full year 2022.
  • Revenues are expected to increase in all regions and major markets except China.
  • The company plans to continue to generate strong operating cash flow.
  • The company will continue to generate returns for shareholders.

Headwinds

  • Demand in China is expected to moderate after a record year in 2021.
  • Industry continues to experience significant supply chain constraints.
  • Elevated manufacturing costs are expected to continue.
  • Elevated logistics costs are expected to continue.
  • Elevated material costs are expected to continue.

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 Q4 2021

Historical avgQ4 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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