Cummins (CMI) Tops Q3 EPS by $1.01, Revenue Beats, Offers Outlook

Cummins (NYSE: CMI) reported Q3 EPS of $3.36, $1.01 better than the analyst estimate of $2.35. Revenue for the quarter came in at $5.1 billion versus the consensus estimate of $4.46 billion.

2020 Outlook:

The company currently expects fourth quarter revenues to be similar to third quarter levels, with higher demand in North America truck markets and continued improvement in aftermarket sales, partially offset by lower demand in China.

On October 1st, the company ended temporary salary reductions that began in April. Compensation expense is projected to increase by approximately $90 million dollars in the fourth quarter due to the end of these salary reductions.

“We are encouraged by the recovery in demand across our markets in the third quarter,” said Chairman and CEO Tom Linebarger. “We will continue to manage cautiously through the remainder of the year as visibility on future orders remains low and the impact of the virus on economies around the world remains difficult to predict.”

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

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