Cummins(CMI) ZACKS·2025-03-06 17:36Core Insights - Cummins reported Q4 2024 earnings of $5.16 per share, exceeding expectations and showing an increase from $4.14 in Q4 2023, driven by strong performance in Power Systems and Distribution segments [2] - Total revenues for Cummins were $8.45 billion, surpassing the consensus estimate but declining from $8.54 billion year-over-year [2] Segment Performance - Engine segment sales decreased by 2% year-over-year to $2.7 billion, missing estimates, with North America and International markets down 2% and 3% respectively due to weaker demand [3] - Distribution segment sales rose 13% year-over-year to $3.1 billion, exceeding projections, with North America up 10% and international sales up 19% [4] - Components segment sales fell 17% year-over-year to $2.6 billion, missing estimates, with North America down 12% and international sales down 24% [5] - Power Systems segment sales increased by 22% year-over-year to $1.7 billion, beating estimates, with North America sales up 42% [6] - Accelera segment sales were $100 million, up 23% year-over-year but below estimates, with a pretax loss of $431 million attributed to development costs [7] Financials & Outlook - Cash and cash equivalents decreased to $1.67 billion as of December 31, 2024, while long-term debt slightly decreased to $4.78 billion [8] - Cummins anticipates a 2-3% decline in full-year 2025 revenues and expects EBITDA to be in the range of 16.2-17.2% [8] Market Sentiment - Recent estimates for Cummins have trended downward, indicating a shift in market sentiment [9][11] - The stock holds a Zacks Rank 3 (Hold), suggesting an expectation of in-line returns in the coming months [11] Investment Scores - Cummins has a Growth Score of B, a Momentum Score of B, and a Value Score of B, placing it in the top 40% for investment strategies [10]