NEW YORK (TheStreet) -- Shares of Cummins (CMI) - Get Cummins Inc. Report were falling 7.9% to $103.24 on Tuesday after the engine maker missed analysts' estimates for earnings and revenue in the third quarter, and announced job cuts.
Cummins reported earnings of $2.14 a share for the third quarter, below analysts' estimates of $2.60 a share for the quarter. Revenue fell 5.09% year over year to $4.6 billion for the quarter, missing analysts' estimates of $4.91 billion.
As a results of a slowdown in global markets Cummins announced it will reduce its workforce by about 2,000, with most of the job cuts coming before the end of 2015.
The company expects to save between $160 million and $200 million annually as a result of the job cuts.
Cummins said it now expects its full year 2015 revenue to be flat to down 2%, compared to its previous guidance of 2% to 4% growth.
About 5.4 million shares of Cummins were traded by 12:55 p.m. Tuesday, above the company's average trading volume of about 1.9 million shares a day.
TheStreet Ratings team rates CUMMINS INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
We rate CUMMINS INC (CMI) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, attractive valuation levels and growth in earnings per share. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
You can view the full analysis from the report here: CMI