Stock Story -
Engine manufacturer Cummins (NYSE:CMI) will be reporting earnings tomorrow before market open. Here's what you need to know.
Cummins met analysts' revenue expectations last quarter, reporting revenues of $8.40 billion, flat year on year. It was a weaker quarter for the company, with a miss of analysts' Engine revenue estimates.
Is Cummins a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting Cummins's revenue to decline 3.3% year on year to $8.35 billion, a reversal from the 31.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $4.76 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Cummins has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 3.4% on average.
Looking at Cummins's peers in the heavy transportation equipment segment, some have already reported their Q2 results, giving us a hint as to what we can expect. PACCAR (NASDAQ:PCAR)'s revenues decreased 2.1% year on year, meeting analysts' expectations, and Federal Signal reported revenues up 10.8%, in line with consensus estimates. PACCAR traded down 9.3% following the results while Federal Signal was up 5.3%.
Read the full analysis of PACCAR's and Federal Signal's results on StockStory.
There has been positive sentiment among investors in the heavy transportation equipment segment, with share prices up 9.4% on average over the last month. Cummins is up 8% during the same time and is heading into earnings with an average analyst price target of $300 (compared to the current share price of $289.04).
![Cummins (CMI) Q2 Earnings: What To Expect](https://d68-invdn-com.investing.com/content/pic3151be9dbbb7bc9daf312bd42f362c3e.jpeg)