The diesel engine manufacturer also reported a 6.9% revenue increase to $4.84 billion that was slightly ahead of analysts $4.82 billion estimates.
However, Cummins shares are down -3.8% to $144.46 on Monday despite the earnings beat after raising its full year guidance to between 8% and 11%, a midpoint that fell below analysts expectations of $18.899 billion for the year.
TheStreet Ratings team rates CUMMINS INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate CUMMINS INC (CMI) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. 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, solid stock price performance, increase in net income and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow."CMI data by YCharts