Zacks Research Issues Negative Forecast for Cummins Earnings

Cummins Inc. (NYSE:CMI) – Research analysts at Zacks Research cut their Q1 2025 EPS estimates for Cummins in a note issued to investors on Tuesday, February 18th. Zacks Research analyst R. Singhi now forecasts that the company will post earnings of $4.86 per share for the quarter, down from their prior forecast of $5.31. The consensus estimate for Cummins’ current full-year earnings is $22.57 per share. Zacks Research also issued estimates for Cummins’ Q2 2025 earnings at $5.78 EPS, Q3 2025 earnings at $5.88 EPS, FY2025 earnings at $22.34 EPS, Q1 2026 earnings at $5.82 EPS, Q3 2026 earnings at $7.14 EPS and Q4 2026 earnings at $7.18 EPS.

Cummins (NYSE:CMI) last issued its quarterly earnings results on Tuesday, February 4th. The company reported $5.16 EPS for the quarter, topping the consensus estimate of $4.70 by $0.46. Cummins had a net margin of 11.57% and a return on equity of 27.12%. The firm had revenue of $8.45 billion during the quarter, compared to analyst estimates of $8.06 billion. During the same quarter in the prior year, the business posted $4.14 earnings per share. Cummins’s revenue for the quarter was down 1.1% compared to the same quarter last year.

A number of other research firms also recently issued reports on CMI. Evercore ISI boosted their price target on Cummins from $408.00 to $451.00 and gave the company an “outperform” rating in a research report on Wednesday. StockNews.com cut Cummins from a “strong-buy” rating to a “buy” rating in a research note on Thursday, February 6th. Robert W. Baird boosted their price objective on Cummins from $395.00 to $407.00 and gave the stock a “neutral” rating in a research note on Wednesday, February 5th. Bank of America upgraded Cummins from an “underperform” rating to a “neutral” rating and boosted their price target for the stock from $354.00 to $358.00 in a research note on Tuesday, January 14th. Finally, The Goldman Sachs Group boosted their price target on Cummins from $324.00 to $370.00 and gave the stock a “neutral” rating in a research note on Wednesday, November 6th. Eight investment analysts have rated the stock with a hold rating and six have given a buy rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $386.67.

Cummins Price Performance

CMI stock opened at $366.79 on Friday. The stock has a 50-day moving average price of $361.51 and a two-hundred day moving average price of $341.71. Cummins has a 12-month low of $259.06 and a 12-month high of $387.90. The company has a current ratio of 1.31, a quick ratio of 0.80 and a debt-to-equity ratio of 0.42. The company has a market cap of $50.43 billion, a PE ratio of 13.02, a price-to-earnings-growth ratio of 2.20 and a beta of 1.00.

Institutional Investors Weigh In On Cummins

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. lifted its holdings in shares of Cummins by 1.5% in the fourth quarter. Vanguard Group Inc. now owns 16,961,646 shares of the company’s stock valued at $5,912,830,000 after purchasing an additional 250,650 shares in the last quarter. State Street Corp lifted its holdings in shares of Cummins by 2.1% in the third quarter. State Street Corp now owns 6,300,051 shares of the company’s stock valued at $2,039,894,000 after purchasing an additional 126,703 shares in the last quarter. Geode Capital Management LLC increased its stake in shares of Cummins by 2.6% in the fourth quarter. Geode Capital Management LLC now owns 3,377,583 shares of the company’s stock worth $1,174,504,000 after acquiring an additional 84,112 shares during the last quarter. Fisher Asset Management LLC increased its stake in shares of Cummins by 2.2% in the fourth quarter. Fisher Asset Management LLC now owns 3,072,457 shares of the company’s stock worth $1,071,059,000 after acquiring an additional 66,887 shares during the last quarter. Finally, Pathway Financial Advisers LLC increased its stake in shares of Cummins by 31,489.1% in the third quarter. Pathway Financial Advisers LLC now owns 2,531,869 shares of the company’s stock worth $819,794,000 after acquiring an additional 2,523,854 shares during the last quarter. Institutional investors and hedge funds own 83.46% of the company’s stock.

Cummins Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, March 6th. Stockholders of record on Friday, February 21st will be given a dividend of $1.82 per share. The ex-dividend date is Friday, February 21st. This represents a $7.28 dividend on an annualized basis and a dividend yield of 1.98%. Cummins’s dividend payout ratio (DPR) is presently 25.84%.

About Cummins

Cummins Inc designs, manufactures, distributes, and services diesel and natural gas engines, electric and hybrid powertrains, and related components worldwide. It operates through five segments: Engine, Distribution, Components, Power Systems, and Accelera. The company offers diesel and natural gas-powered engines under the Cummins and other customer brands for the heavy and medium-duty truck, bus, recreational vehicle, light-duty automotive, construction, mining, marine, rail, oil and gas, defense, and agricultural markets; and offers parts and services, as well as remanufactured parts and engines.