Benzinga - Cummins Inc (NYSE: CMI) reported first-quarter FY23 sales growth of 32.4% year-over-year to $8.45 billion, beating the consensus of $8.1 billion.
- The Columbus, Indiana-based company stated that Sales in North America increased by 39% and international revenues increased by 24% due to the addition of Meritor and strong demand across all key global markets.
- Adjusted EPS of $5.65 beats the consensus of $4.75.
- Sales by segments: Components $3.6 billion (79% Y/Y), Engine $3 billion (+8% Y/Y), Distribution $2.4 billion (+14% Y/Y), Power Systems $1.3 billion (+16% Y/Y), and Accelera $85 million (+174% Y/Y).
- Operating income increased 69.9% Y/Y to $1.03 billion, and the margin expanded by 268 bps to 12.1%.
- Cummins's net cash provided by operating activities for Q1 totaled $495 million, compared to $164 million a year ago.
- Q1 EBITDA as a percentage of net sales improved to 16.1% from 11.8%.
- Cummins has raised its guidance on revenue and profitability for 2023 due to "continued demand" for its products and services, according to CEO Jennifer Rumsey.
- "We will continue monitoring global economic indicators closely to ensure we are prepared should economic momentum slow," Rumsey added.
- FY23 Outlook raised: Cummins expects revenue growth of 15%-20% (prior 12%-17%) and expects EBITDA in the range of 15%-15.7% (prior 14.5%-15.2%) of sales.
Image courtesy of Cummins.
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