The Wall Street Journal reported that shares, which have declined nearly 10% in the past three months, rose 4% in premarket trading to $128.75 as both profit and revenue topped analysts’ expectations.
The Indiana company backed its outlook for the year, still projecting 2% to 4% revenue growth. That translates to $19.61 billion to $19.99 billion, bracketing the $19.81 billion analysts predict. The affirmed guidance comes despite weak economic conditions in key foreign markets and a stronger U.S. dollar that also is pressuring Cummins’ revenue.
For the latest period, Cummins reported earnings of $471 million, or $2.62 a share, up from a year-earlier profit of $446 million, or $2.43 a share.
Revenue grew 3.7% to $5.02 billion. Adverse foreign exchange shaved 4% off the top line, the company said.
Cummins’s engine segment, its largest, reported a 2% increase in sales as strong demand in North American truck and bus markets countered weaker demand in global industrial markets and lower truck demand in Brazil.
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