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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowCummins Inc. on Tuesday raised its outlook for the rest of the year after reporting first-quarter earnings and revenue that exceeded Wall Street expectations.
Despite the positive news, shares in the Columbus-based engine manufacturer sank 5.2 percent in early trading, to $151.50 each.
Cummins reported a profit of $325 million, or $1.96 per share, in the latest quarter, down from $396 million, or $2.36 per share, in the same period of 2017.
Earnings, adjusted for non-recurring costs and pretax expenses, came to $3.30 per share. The results topped the average estimate of 11 analysts surveyed by Zacks Investment Research for adjusted earnings of $2.91 per share.
Revenue jumped 21 percent, to $5.57 billion. Eight analysts surveyed by Zacks expected $5.17 billion in revenue.
Cummins officials said sales rose thanks to stronger demand from the North American heavy-duty truck market and global construction-equipment makers.
Sales in North America improved by 22 percent while international revenue increased by 20 percent.
Cummins said it expects full-year 2018 revenue to increase by 10 percent to 14 percent, compared to prior guidance of 4 percent to 8 percent.
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