Cummins ( NYSE: CMI ) stock edged higher in premarket trading on Monday after reporting stronger than expected Q4 revenue.
The Indiana-based manufacturer notched $4.52 in earnings per share for the fourth quarter, in-line with analyst expectations. Meanwhile, a 32.2% rise in revenue year over year to $7.8B far exceeded the $7.21B analyst estimate.
“In 2022, Cummins continued to advance its Destination Zero growth strategy through the acquisitions of Jacobs Vehicles Systems, Meritor and the Siemens Commercial Vehicles business,” CEO Jennifer Rumsey commented. “We delivered strong profitability in the fourth quarter and achieved record full year revenues, EBITDA and EPS last year.”
Moving forward, management expects revenues to rise 12% to 17% in 2023 and EBITDA to be in the range of 14.5% and 15.2% of sales. The Meritor business is expected to generate $4.5B to $4.7B, and EBITDA to be in the range of 10.3% to 11% of sales.
“In 2023, we anticipate that demand will remain strong in most of our key regions and markets, especially in the first half of the year,” Rumsey said. “We will continue monitoring global economic indicators closely and ensure we are prepared should economic momentum slow further. We expect revenue growth and margin expansion in our core business and strong growth in our New Power segment in 2023.”
Shares of Cummins Inc. ( CMI ) rose 0.7% on light volume in premarket trading on Monday.
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Cummins reports record revenue, EPS for 2022