Cummins(CMI) ZACKS·2025-04-28 15:06Core Viewpoint - The market anticipates a year-over-year decline in Cummins' earnings due to lower revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - Cummins is expected to report quarterly earnings of 8.07 billion, which is a 4% decline from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 7.13% over the last 30 days, indicating a bearish sentiment among analysts regarding the company's earnings prospects [4][10]. - The Most Accurate Estimate is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -1.79% [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likely deviation of actual earnings from consensus estimates, with positive readings being more predictive of earnings beats [5][7]. - Stocks with a positive Earnings ESP and a Zacks Rank of 1, 2, or 3 have historically shown a nearly 70% chance of delivering a positive surprise [8]. Historical Performance - In the last reported quarter, Cummins exceeded the expected earnings of 5.16, resulting in a surprise of +10.26% [12]. - Over the past four quarters, Cummins has beaten consensus EPS estimates three times [13]. Conclusion - Despite the potential for an earnings beat, various factors can influence stock movement, making it essential to consider other elements beyond just earnings results [14][16].