Ahead Of Cummins' Q3 Results

(RTTNews) - Engine maker Cummins Inc. (CMI) is scheduled to release its third-quarter numbers before the bell on Tuesday, October 27. Analysts, polled by Thomson Reuters, are estimating earnings of $2.60 per share on revenue of $4.91 billion.

For fiscal 2015, the company projects revenues to grow between 2% and 4%, and EBIT in the range of 13.5% - 14.0% of sales. Twenty five Wall Street analysts have a consensus revenue estimate of $19.76 billion for 2015.

The company expects to expect to add about $600 million in company revenues in fiscal 2015, in addition to more than $460 million adding 2014, and exceeding the $1 billion in revenues it projected for 2015 at its 2013 Analyst Day. Cummins currently expect to add $0.20 to earnings per share this year on top of the $0.43 added in 2014 for a total of $0.63 also ahead of its 2013 projections of $0.50 a share.

In the last quarter, the company reported higher profit, on improved revenues and curbs is manufacturing costs. Both earnings and revenue for the quarter trumped Wall Street estimates.

Second-quarter profit improved to $471 million or $2.62 per share from $446 million or $2.43 per share last year. On average, 25 analysts polled by Thomson Reuters expected earnings of $2.55 per share for the quarter. Analysts' estimates typically exclude certain special items.

Cummins revenue grew 4% to $5.0 billion from $4.84 billion from a year ago. Analysts had a consensus revenue estimate of $4.94 billion for the quarter.

The company said sales growth was driven largely by stronger demand in on-highway markets and distributor acquisitions in North America. Currency negatively impacted revenues by 4% compared to last year, primarily due to a stronger US dollar.

Revenues in North America increased 12% while international sales declined by 6%, as sales in Brazil fell the most due to a weak economy.

"We delivered strong results in the second quarter, despite challenging economic conditions in a number of international markets, and we increased cash returned to shareholders," said Cummins Chairman and CEO Tom Linebarger. "Earnings improved as a result of good performance by our manufacturing and supply chain organizations and solid execution on material cost reduction initiatives. We returned $517 million to shareholders in the form of dividends and share repurchases in the second quarter and we recently announced a 25 percent increase in our quarterly dividend."