Cummins (CMI) Beats Lowered Q2 Expectations on Robust Margins, North American Demand
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Price: $116.43 +1.84%
EPS Growth %: -37.4%
Financial Fact:
Diluted (in dollars per share): 1.49
Today's EPS Names:
LBIX, ESEA, ISS, More
EPS Growth %: -37.4%
Financial Fact:
Diluted (in dollars per share): 1.49
Today's EPS Names:
LBIX, ESEA, ISS, More
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Industrial giant Cummins, In. (NYSE: CMI) shares are trading higher amid stronger than expected second-quarter 2012 results. Earlier in July, a number of industrial stocks tumbled when the company warned that its revenue would come in below guidance. As a result, investors lowered their expectations for a number of industrial stocks, including Caterpillar (NYSE: CAT).
In the wake of the warning, Caterpillar beat estimates and shares popped. Cummins reported EPS of 2.45, beating earnings expectations by 17 cents.
Revenue was reported 4 percent lower compared to 2011, to $4.45 billion. Overall, sales were down 2 percent, as lower sales to China construction, Brazilian truck and North American oil and gas markets offset improved demand in North American construction.
Gross margins came in at 27.2 percent, from 25.9 percent in the same period last year.
In comments Chairman and CEO, Tom Linebarger said “second quarter gross margins were at record levels as we continue to drive improvements in productivity and quality. Looking forward, as the global economy improves, our growth opportunities remain strong.”
Based on the current forecast, Cummins expects full year revenues to be $18 billion, with EBIT in the range of 14.25 to 14.75 percent of sales.
Cummins is up over 6 percent Tuesday morning.
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In the wake of the warning, Caterpillar beat estimates and shares popped. Cummins reported EPS of 2.45, beating earnings expectations by 17 cents.
Revenue was reported 4 percent lower compared to 2011, to $4.45 billion. Overall, sales were down 2 percent, as lower sales to China construction, Brazilian truck and North American oil and gas markets offset improved demand in North American construction.
Gross margins came in at 27.2 percent, from 25.9 percent in the same period last year.
In comments Chairman and CEO, Tom Linebarger said “second quarter gross margins were at record levels as we continue to drive improvements in productivity and quality. Looking forward, as the global economy improves, our growth opportunities remain strong.”
Based on the current forecast, Cummins expects full year revenues to be $18 billion, with EBIT in the range of 14.25 to 14.75 percent of sales.
Cummins is up over 6 percent Tuesday morning.
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