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Cummins posts quarterly profit beat on strong demand for power products from data centers
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Cummins posts quarterly profit beat on strong demand for power products from data centers
Nov 5, 2024 7:50 AM

Nov 5 (Reuters) - Cummins Inc ( CMI ) beat third-quarter

profit estimates on Tuesday, due to robust demand for its power

generation products from data centers, sending the shares of the

company up more than 4% in pre-market trading.

Rising demand from the technology industry's energy-hungry

AI data centers has bolstered the results of power solution

providers in recent quarters.

Indiana-based Cummins saw double-digit revenue growth in its

Distribution segment, which is engaged in wholesaling power

generation products and performing repair activities, and its

Power Systems segment, which designs and sells engines for

industrial applications.

The strong performance offset declines in the Components and

Engine Segments due to weakness in the North American heavy-duty

truck market, where Cummins supplies engines and associated

parts.

The company expects the trend to persist in the fourth

quarter.

Cummins reported third-quarter revenue of $8.45 billion,

above analysts' estimates of $8.30 billion, according to data

compiled by LSEG.

The company's third-quarter earnings per share of $5.86 also

beat analysts' average estimates of $4.80 per share.

Core earnings or EBITDA came in at $1.4 billion, or 16.4% of

sales, compared with $1.2 billion, or 14.6% of sales, a year

ago.

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