Cummins (CMI) Tops Q4 EPS by 56c, Revenues Beat

February 4, 2021 7:33 AM EST

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Cummins (NYSE: CMI) reported Q4 EPS of $3.36, $0.56 better than the analyst estimate of $2.80. Revenue for the quarter came in at $5.8 billion versus the consensus estimate of $5.19 billion.

  • Fourth quarter revenues of $5.8 billion; GAAP1 Net Income of $501 million
  • Fourth quarter EBITDA of 14.4 percent; Diluted EPS of $3.36
  • Full year revenues of $19.8 billion; GAAP1 Net Income of $1.8 billion
  • EBITDA for the full year was 15.7 percent of sales; Diluted EPS of $12.01
  • The company expects full year 2021 revenues to be up 8 to 12 percent, EBITDA expected to be in the range of 15.0 to 15.5 percent

“We faced many challenges in 2020 driven by the severe global impact of the COVID-19 pandemic,” said Chairman and CEO Tom Linebarger. “I want to thank all of our employees for their dedication to our company and our customers as they adjusted to the unprecedented slowdown in the global economy and then responded as demand accelerated sharply in the second half of the year, all while facing significant disruption to their daily routines at work and home.”

2021 Outlook:

Based on the current forecast, Cummins projects full year 2021 revenues to be up 8 to 12 percent, and EBITDA to be in the range of 15.0 and 15.5 percent of sales. We expect revenues to increase in all regions and major markets except China where we expect demand to moderate after a record year in 2020.

“Current indicators point to improving demand in a number of key regions and markets in 2021. However, significant uncertainty remains, requiring continued strong focus on managing costs and cash flow as our markets continue to recover around the world. We are still operating under a pandemic with extreme safety measures in place and our suppliers and customers are doing the same. This is presenting challenges to global supply chains as our industry responds to rising demand across multiple end markets. Having effectively managed through an extremely challenging 2020, Cummins is in a strong position to keep investing in future growth while continuing to return cash to shareholders,” said Chairman and CEO Tom Linebarger.

The Company plans to return 75 percent of Operating Cash Flow to shareholders in the form of dividends and share repurchases.

For earnings history and earnings-related data on Cummins (CMI) click here.

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