Cummins Stock Gains After Q4 Revenue Impresses Wall Street: Retail’s On Wait-And-Watch Mode
Synopsis
The power solutions provider’s fourth-quarter revenue of $8.45 billion beat the average analysts’ estimate of $8.09 billion, according to FinChat data.
Cummins Inc (CMI) stock gained 4.4% on Tuesday after the company’s fourth-quarter earnings topped Wall Street estimates.
The power solutions provider’s fourth-quarter (Q4) revenue of $8.45 billion beat the average analysts’ estimate of $8.09 billion, according to FinChat data. However, sales declined 1.1% year-over-year due to a 3% fall in international revenue.
It also reported a net income of $418 million, or $3.02 per share, for the three months ended Dec. 31, compared to a net loss of $1.4 billion, or $10.01 per share, in the year-ago quarter.
The company’s fourth-quarter profits were hit by its new power segment Accelera's reorganization actions, which amounted to $312 million, or $2.14 per share, in non-cash charges.
The Columbus, Indiana-based company said its power solutions unit sales jumped 22% to $1.7 billion while distributions segment revenue rose 13% to $3.1 billion.
The company attributed the rise to increased power generation demand, particularly for artificial intelligence data centers.
Its component segment sales slumped 17% to $2.6 billion compared to last year, hurt by the separation of its Atmus unit and lower demand in heavy-duty truck markets.
Engine segment sales also fell 2% to $2.7 billion.
Cummins forecasts full-year 2025 revenue to be in the range of down 2% to up 3%.
“In 2025, we anticipate that demand will be slightly weaker in the North America on-highway
truck markets, particularly in the first half of the year, but offset by strength in other key
Markets,” CEO Jennifer Rumsey said in a statement.
On Stocktwits, retail sentiment continued to trend in the ‘neutral’ territory.
One Stocktwits user hopes the stock will hit $400 by the end of the following month.
In January, power equipment maker GE Vernova’s shares hit an all-time high after the firm more than doubled its fourth-quarter profit.
Over the past year, Cummins stock has gained 49.2%.
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