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.