Cummins posts quarterly profit beat on strong demand for power products from data centers
by Reuters Nov 05, 2024
Cummins Inc 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.
Reuters
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