Earnings Preview: Cummins EPS, Revenue Expected to Rise from Previous Quarter

Cummins CMI unveils its next round of earnings on Tuesday, July 26, 2011. Here's Benzinga's essential guide to Cummins' second quarter earnings report.

Earnings and Revenue:

Analysts are predicting a positive EPS reading of $2.01 per share and revenues of $4.22 billion. Investors will be keen to see how this quarter's numbers stack up against the year-ago quarter's positive EPS reading of $1.25 per share and revenues of $3.21 billion. We'll have to wait for Tuesday to see if Cummins falls in line with analyst expectations and reports an estimated increase in both EPS and revenue from the year-ago quarter.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter	Q1	Q4	Q3	Q2
EPS Estimate	$1.44	$1.71	$1.40	$0.89
EPS Actual	$1.75	$1.84	$1.33	$1.25

Stock Performance:

As of July 20, 2011, Cummins' current share price was $106.75. Since January 1st, shares of Cummins have declined 2.5%. For a full 12 months, the return has risen by 16.6%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

• Long-term shareholders are already enjoying 12-month gains prior to the announcement

Average Stock Rating:

The average rating by analysts for Cummins is a Moderate Buy. This rating has strengthened over the past three months.

Competitors:

Wondering how Cummins compares to rivals in the same sector? Here are a few of the company's peers.

• Brunswick BC: Moderate Buy with a $0.35 recent quarter EPS
• BorgWarner BWA: Hold with a $1.00 recent quarter EPS
• Caterpillar CAT: Moderate Buy with a $1.84 recent quarter EPS
• Briggs & Stratton (BGG): Hold with a $1.02 recent quarter EPS

The engines company's industry has seen price/earnings contraction of 0.4% during the current fiscal year.

Finally, a description of the company's main areas of operation: Cummins is a company engaged in the design, manufacturing and distribution of diesel and natural gas engines and related technologies. Its services to markets worldwide include electric power generation systems and engine-related component products.

Take Action:

There is your peek into Cummins' upcoming earnings numbers, including some competitors to watch around the time of the announcement. Check back in with us after the announcement for a full recap of the announcement. In the meantime, here are some links to explore today.

• To see up-to-date news on Cummins, click here
• To see other trading ideas, click here
• To see other company earnings recaps, click here