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Sep 30, 2022
Cummins Q3 2022 Earnings Report
Cummins' Q3 2022 earnings were impacted by Meritor acquisition and Filtration business separation.
Key Takeaways
Cummins reported third quarter revenues of $7.3 billion and GAAP Net Income of $400 million. The results reflect the acquisition of Meritor, costs related to the separation of the Filtration business, and discrete tax items.
Third quarter revenues reached $7.3 billion.
GAAP Net Income was $400 million, or 5.5 percent of sales, with diluted EPS of $2.82.
EBITDA in the third quarter was 12.1 percent of sales.
The acquisition of Meritor contributed $737 million in revenue and a GAAP Net Loss of $37 million, or $0.26 per diluted share.
Revenue by Segment
Forward Guidance
Cummins updated its outlook for the full year 2022, excluding the Meritor business.
Positive Outlook
- Full year 2022 revenue guidance is being maintained, with revenue expected to be up 8 percent.
- The company continues to expect to return approximately 50 percent of Operating Cash Flow to shareholders in 2022 in the form of dividends and share repurchases.
Challenges Ahead
- Full year 2022 EBITDA is now expected to be approximately 15.0 percent of sales, excluding the Meritor business and related acquisition and integration costs, the impacts of the indefinite suspension of our operations in Russia and the costs associated with preparing for the expected separation of our Filtration business. This is below the company’s previous guidance of approximately 15.5 percent of sales and reflects an improvement from the third quarter to the fourth quarter.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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