Cummins Sails Through Market Turbulence: Posts Revenue Uptick While Bracing For A Challenging 2024
Portfolio Pulse from Akanksha Bakshi
Cummins Inc (NYSE:CMI) reported a 10% year-over-year sales growth for Q4 fiscal 2023, reaching $8.54 billion and surpassing the $8.14 billion consensus. Despite strong sales, adjusted EPS of $4.14 missed expectations by $0.34. The company faced a $2.04 billion charge related to U.S. regulatory claims and other costs. Operating loss was $(1.21) billion compared to an income of $802 million a year ago. Cummins anticipates a 2%-5% revenue decline in 2024, with an EBITDA margin of 14.4%-15.4%. Shares rose 3.07% to $248.51.
February 06, 2024 | 5:33 pm
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NEUTRAL IMPACT
Cummins Inc reported strong Q4 sales growth but missed EPS expectations and reported a significant operating loss due to regulatory charges. The company anticipates a revenue decline in 2024.
The mixed Q4 results with strong sales growth but missed EPS expectations and a significant operating loss due to regulatory charges create uncertainty. The positive stock price reaction suggests investors may be focusing on the sales growth and future potential despite the challenges. The 2024 revenue decline projection adds caution, but the stock's immediate positive reaction indicates a neutral short-term impact.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100