Shares of Cummins (NYSE: CMI) rallied 11.5% higher in July, according to data provided by S&P Global market Intelligence, despite the engine maker delivering a dud quarter at the end of July. Cummins shares, though, held up strong through the month.
Investors clearly believe Cummins is one of the stronger industrial companies that should be able to ride out the pandemic storm with fortitude, even as management looks for opportunities to invest in future fuels like hydrogen.
Cummins reported its second quarter numbers on July 28, and it was, by far, among the company's worst quarters in recent history. Revenue slumped 38% as the COVID-19 pandemic hit operations and demand, with sales from North America tumbling 48% and international revenues falling 22% year over year. Net income crashed 59%, compelling management to refrain from providing any full-year revenue or profitability guidance amid the macro uncertainties.