Cummins Shares Rise Following Strong Demand Surpassing Q3 Forecasts

NEW YORK - Engine manufacturer Cummins Inc (NYSE:CMI) reported stronger-than-expected third-quarter results on Tuesday, as robust demand in its power systems and distribution businesses offset a slowdown in the North American heavy truck market. The company maintained its full-year revenue guidance but raised its profitability outlook. Cummins' shares rose 1% in pre-market trading following the earnings announcement. The company reported adjusted earnings of $5.86 per share for the third quarter, easily surpassing analysts' forecasts of $4.82. Revenue came in at $8.5 billion, exceeding expectations of $8.29 billion and remaining flat compared to the same quarter last year. Cummins' Chairman and CEO Jennifer Rumsey stated, "We achieved strong sales and profitability in the third quarter, led by improvements in our Power Systems and Distribution businesses." The company maintained its full-year revenue forecast for 2024, projecting a decline of 3% year-over-year, indicating a flat trajectory. However, Cummins expects full-year EBITDA to be approximately 15.5% of sales, sitting at the upper end of its previous forecast range of 15.0% to 15.5%. Cummins noted that demand in the North American heavy truck market has slowed in the third quarter, expecting this trend to continue into the fourth quarter. However, this was offset by strong performance in global mid-range truck markets and increased demand for power generation products, particularly for data center applications. Rumsey added, "Despite facing a slowdown in demand in the North American heavy truck market in the third quarter and anticipating this trend to carry into the fourth quarter, Cummins remains well-positioned to deliver strong financial performance."