Cummins Shares Reach $717.33 After 20% Rally and Q1 EPS Beat
Shares of Cummins have surged 20% over the past month to a 52-week high of $717.33, lifting year-to-date gains to 40.2% versus a 7.6% sector drop. Q1 EPS of $6.15 beat estimates by 9.8%, and fiscal-year guidance calls for $26.06 per share on $35.66 billion in revenues.
1. Stock Performance
Shares of Cummins rose 20% over the past month to $717.33, a new 52-week high, bringing year-to-date gains to 40.2% compared with a 7.6% decline in the Auto-Tires-Trucks sector and a 40.1% return for the internal combustion engines industry.
2. Q1 Earnings Beat
In its May 5 report, Cummins delivered EPS of $6.15 versus a consensus of $5.60, marking a 9.8% surprise and the fourth consecutive quarter of positive earnings surprises, underscoring the strength of its core powertrain operations.
3. Fiscal-Year Outlook
Management projects fiscal-year EPS of $26.06 and revenues of $35.66 billion, implying 9.6% EPS growth and 5.9% revenue growth year-over-year. For the following year, guidance calls for $30.50 in EPS on $37.85 billion in revenues, reflecting continued double-digit EPS expansion.
4. Valuation and Ratings
Cummins trades at 27.5× forward EPS in line with peers and at 22.4× trailing cash flow versus an 18.3× peer average, with a PEG ratio of 2.26. Analysts maintain a Buy rating, balancing strong momentum against modest value metrics.