Upcoming AWS Coverage on Nordson Post-Earnings Results

LONDON, UK / ACCESSWIRE / May 16, 2017 / Active Wall St. announces its post-earnings coverage on Cummins Inc. (NYSE: CMI). The Company reported its first quarter fiscal 2017 results on May 02, 2017. The engine maker exceeded top- and bottom-line expectations. Register with us now for your free membership at:

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One of Cummins' competitors within the Diversified Machinery space, Nordson Corp. (NASDAQ: NDSN), announced on May 03, 2017, that it will release its Q2 FY17 earnings on Monday, May 22, 2017, after the close of the market. Nordson will host its quarterly webcast on Tuesday, May 23, 2017. AWS will be initiating a research report on Nordson in the coming days.

Today, AWS is promoting its earnings coverage on CMI; touching on NDSN. Get our free coverage by signing up to:

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Earnings Reviewed

For the three months ended April 2, 2017, Cummins revenues of $4.59 billion increased 7% from Q1 2016 sales of $4.29 billion, outperforming analysts' consensus of $4.18 billion. Stronger demand from construction and mining customers and higher sales from a distributor acquisition in the previous quarter, more than offset the impact of weaker truck production in North America. Currency negatively impacted revenues by approximately 1%, primarily due to a stronger US dollar. International sales improved by 17% primarily due to growth in China and Europe while revenues in North America increased 1%.

For Q1 2017, Cummins reported earnings before interest and taxes (EBIT) of $566 million, or 12.3% of sales, an increase from $484 million, or 11.3% of sales, in Q1 2016. The tax rate in the reported quarter was 26.1%.

Net income attributable to Cummins in Q1 2017 was $396 million, or $2.36 per diluted share, compared to $321 million, or $1.87 per diluted share. The earnings result was better than Wall Street's expectations of $1.81 per share.

"Cummins delivered solid financial results, successfully launched new products and returned $222 million in cash to shareholders in the form of dividends and share repurchases in the first quarter," said Chairman and CEO Tom Linebarger.

Segment Results

For its Engine segment, Cummins reported sales of $2.0 billion, up 2% on a y-o-y basis. The segment EBIT totaled $229 million, or 11.3% of sales, in the reported quarter compared to 197 million or 10% of sales in the year ago same period. The segment's Off-highway revenues increased 20% on a y-o-y basis primarily due to higher engines sales to global construction markets, while on-highway revenues declined by 2%.

During Q1 2017, Cummins' Distribution segment reported sales of $1.6 billion, up 12% on a y-o-y basis. The segment EBIT totaled $100 million, or 6.1% of sales, in the reported quarter, compared to 87 million, or 5.9% of sales, in the year ago comparable period. The segment's organic sales increased 6% and revenue from the acquisition completed in Q4 2016 added 6%.

For its Components segment, Cummins reported sales of $1.3 billion in Q1 2017, up 9% on a y-o-y basis. The segment EBIT totaled $179 million, or 13.3% of sales, in the reported quarter compared to 163 million, or 13.2% of sales, in the year ago corresponding period. The segment's strong international revenue growth, primarily in China, more than offset sales declines in North America due to lower commercial truck production

During Q1 2017, Cummins' Power Systems segment reported sales of $882 million, up 9% on a y-o-y basis. The segment EBIT totaled $57 million, or 6.5% of sales, in the reported quarter compared to $46 million, or 5.7% of sales, in the year ago same period. Increased demand for industrial engines sales primarily for mining and oil & gas markets was the primary driver of revenue growth for the segment.

Capital Plan

During Q1 2017, Cummins returned $222 million to shareholders in the form of dividends and share repurchase, consistent with its plan to return 50% of operating cash flow in 2017.

Outlook

Cummins expects full year 2017 revenues to increase in the range of 4% to 7% compared to prior guidance of flat to down 5%. EBIT is projected to be in the range of 11.75% to 12.5% of sales, up from 11% to 11.5%.

Stock Performance

On Monday, May 15, 2017, Cummins' share price finished the trading session at $156.60, slightly down 0.24%. A total volume of 1.64 million shares exchanged hands, which was higher than the 3 months average volume of 1.31 million shares. The stock has soared 15.26% and 44.48% in the last six months and past twelve months, respectively. Furthermore, since the start of the year, shares of the Company have rallied 15.35%. The stock is trading at a PE ratio of 17.95 and has a dividend yield of 2.62%.

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SOURCE: Active Wall Street