Will Cummins Beat These Analyst Estimates?

Cummins (NYSE: CMI  ) is expected to report Q1 earnings around Feb. 8. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Cummins's revenues will wither -8.9% and EPS will shrink -16.4%.

The average estimate for revenue is $4.07 billion. On the bottom line, the average EPS estimate is $1.99.

Revenue details
Last quarter, Cummins chalked up revenue of $4.29 billion. GAAP reported sales were 13% lower than the prior-year quarter's $4.92 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $2.00. GAAP EPS of $2.02 for Q4 were 29% lower than the prior-year quarter's $2.86 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 24.7%, 50 basis points worse than the prior-year quarter. Operating margin was 9.4%, 200 basis points worse than the prior-year quarter. Net margin was 8.9%, 220 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $17.62 billion. The average EPS estimate is $9.03.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cummins is outperform, with an average price target of $108.88.

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