Cummins Inc. posted record Q1 sales, extending a yearlong streak of outperforming analyst forecasts. It missed on income in part because of a $158 million write-off for indefinitely suspending business in Russia.
Q1 revenues were $6.4 billion. Net income was $418 million, or $2.92 per fully diluted share. That compared to $603 million, or $4.07, in the first quarter a year ago. Earnings before interest, taxes, depreciation and amortization were $755 million, or 11.8% of sales. They were a record record $980 million, or 16.1%, a year ago.
Supply chain constraints impact earnings
“Supply chain constraints continue to be a challenge and are limiting growth in our industry,” said Tom Linebarger, Cummins CEO and chairman.
A consensus of analysts surveyed by investor site Seeking Alpha called for $3.55 earnings per share and revenue of $6.06 billion.
The company raised full-year revenue guidance to be up 8% versus an earlier estimate of up 6%. It maintained full-year EBITDA guidance at 15.5% of sales.
Company stock buybacks and dividends 50% of operating income
Cummins, which has seen mostly downgrades to estimates for EPS and revenue in recent months, said it plans to return approximately 50% of operating cash flow to shareholders through dividends and share repurchases.
Cummins is raising its guidance for revenue to be up 8% in 2022 from an earlier estimate of plus 6%. (Photo: Cummins)
