Cummins Q1 Revenue Falls Short As International Demand Weakens: Details
Portfolio Pulse from Akanksha Bakshi
Cummins Inc (NYSE:CMI) reported a slight decline in Q1 2024 sales by 0.6% YoY to $8.401 billion, missing consensus estimates. International demand weakened, particularly in China and Europe, while North American sales remained flat. Adjusted EPS was $5.10, below the expected $5.13. The company saw a net gain from the Atmus separation but faced restructuring expenses. Despite a decrease in operating income and cash flow, Cummins raised its 2024 revenue and profitability expectations, anticipating a demand slowdown in H2 2024. Shares fell by 1.50% to $279.62.
May 02, 2024 | 3:59 pm
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Cummins Inc reported a slight Q1 2024 sales decline and missed EPS estimates, but raised its 2024 outlook despite expecting a demand slowdown.
The slight miss in sales and EPS for Q1 2024 could negatively impact investor sentiment in the short term, leading to a decrease in stock price as indicated by the current 1.50% drop. However, the company's optimistic outlook for 2024, with raised revenue and profitability expectations, might mitigate some of the negative impact. The anticipation of a demand slowdown in key markets in the second half of the year adds uncertainty, potentially influencing short-term stock performance.
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