COLUMBUS, Ind. - Cummins Inc . (NYSE: NYSE:CMI) today announced its first-quarter earnings, slightly surpassing analyst expectations for adjusted earnings per share (EPS) but falling short on revenue forecasts. CMI stock was up 1.1% in premarket trading.
The company reported an adjusted EPS of $5.10, marginally above the analyst estimate of $5.06. However, quarterly revenue reached $8.4 billion, not quite meeting the consensus estimate of $8.45 billion.
The company's first-quarter revenue represented a 1% decrease from the same quarter in the previous year, with flat sales in North America and a 1% decline internationally due to lower demand in China and Europe. Despite the slight revenue decline, Cummins' net income attributable to the company was a robust $2.0 billion, or $14.03 per diluted share, which included a significant net gain of $1.3 billion from the separation of Atmus.
Looking ahead, Cummins raised its full-year 2024 EBITDA guidance to a range of 14.5% to 15.5%, up from the previous forecast of 14.4% to 15.4%. This adjustment reflects the company's expectations for continued strong demand for its products and services, despite anticipating a slowdown in some key markets in the latter half of the year. Revenue projections for 2024 remain unchanged, with a predicted decline of 2% to 5%, even after accounting for the separation of Atmus.
Cummins' Chair and CEO, Jennifer Rumsey, expressed confidence in the company's performance and future prospects. "We continued to see strong demand from customers in the first quarter of 2024, reflecting the quality and performance of our products," Rumsey stated. "We delivered solid profitability and also completed the separation of Atmus, allowing Cummins to continue its focus on advancing innovative power solutions."
As the company navigates through the year, it remains committed to generating strong operating cash flow and delivering returns to shareholders, with a strategic goal of returning 50% of operating cash flow back to investors. Cummins also plans to prioritize reinvestment for profitable growth, dividends, and debt reduction.
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