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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. raised its outlook for the rest of the year Tuesday after it experienced better-than-expected profit and revenue in the first quarter.
The Columbus-based engine manufacturer reported first-quarter earnings of $396 million, or $2.36 per share, up from $321 million, or $1.87 per share, in the first quarter of 2016.
The profit easily beat Wall Street expectations. The average estimate of nine analysts surveyed by Zacks Investment Research was for earnings of $1.81 per share.
Cummins reported revenue of $4.59 billion in the period, up 7 percent from the year-ago quarter. Revenue topped the average estimate of $4.18 billion by seven analysts surveyed by Zacks.
International sales improved by 17 percent, primarily due to growth in China and Europe while revenues in North America increased 1 percent, the company said.
Cummins said it expects full-year 2017 revenue to be increase in the range of 4 percent to 7 percent, compared to prior guidance of flat to negative-5 percent.
Earnings before interest and taxes are projected to be in the range of 11.75 percent to 12.5 percent of sales, up from 11 percent to 11.5 percent, Cummins said.
Cummins shares were up 6.2 percent Tuesday morning, to $160.68 each. They have risen about 30 percent in the past year.
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