Cummins (NYSE: CMI) reported Q1 EPS of $3.41, $1.25 better than the analyst estimate of $2.16. Revenue for the quarter came in at $5 billion versus the consensus estimate of $4.88 billion.

• First quarter net income included a benefit of $35 million ($0.23 per diluted share) resulting from recent changes to tax law in India. The tax rate in the first quarter was 19.4 percent.

2020 Outlook:

Due to uncertainty related to the coronavirus pandemic, the company is not providing revenue or profitability guidance for 2020. While customer operations have begun to resume activity, the company does expect a significant impact to its second quarter results due to disruptions across customer and supplier operations and lower end market demand. For now, the company is planning for weak demand levels to persist for some time. In response to these challenges the company recently announced a set of cost reduction actions, including a temporary reduction in salaries. In addition, the company is lowering its targeted capital expenditures by more than 25 percent as compared to 2019 and will continue to closely monitor market conditions and adjust our plans accordingly.

First Quarter 2020 Highlights:

• Cummins Foundation Issued Grants to Community Partners Addressing Urgent Childcare, Nutrition and Remote Learning Needs Caused by COVID-19 Crisis.
• Announced partnerships with DuPont and 3M to provide critical material for N95 masks and Powered Air Purifying Respirators.
• The Human Rights Campaign (HRC) announced that Cummins received a perfect score for a 15th consecutive year in its Corporate Equality Index.
• Cummins was named to Ethisphere’s list of the World’s Most Ethical Companies for a 13th consecutive year.

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