Cummins 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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