Cummins Inc. Expected To Report $2.57 EPS Following “A” Credit Rating

Company reported EPS at $2.04 in late April this year.

Analysts at Wall Street are expecting Cummins Inc. (NYSE:CMI) to report an earnings per share at $2.50, which is 26% more than when the company reported its EPS at $2.04 for the quarter ending on March 31, 2015.

The consensus is made after Cummins Inc. was given an “A” credit rating from Morningstar, indicating that the company is at low risk of default at the end of last month. It has also led many brokerage analysts to set the target price at $154 on the stock. The most bullish assessment among analysts is seeing the stock price at $180 and the bearish ones are expecting $134.

For future growth projections for the company, analysts are expecting earnings per share to average around $10.35, with the most bullish assessment calling for EPS at $11.08, and the most bearish calling for $9.7.

Cummins has been expanding its operations by taking advantage of strong, yet sputtering, economic growth, even though the economy is mostly driven by startups and high finances. Last month, the company has expanded its distribution center in Memphis, in order to support its global supply chain operations to optimize freight and transportation options, as it stretches itself to the point of bringing down costs while helping to support the country’s physical infrastructure in a market that is likely to value in trillions of dollars. This provides a tremendous opportunity for the diesel engine and fuel and natural gas systems manufacturer to keep innovating and try to adapt to ever-changing needs of environmentally sustaining lives of citizens.

It is also aggressively investing in boosting its clean power credentials to make its engine oil fuels more economically and environmentally friendly. Demand is more to come from overseas market, as countries, such as India and China, try to step up their fight against environmental pollution that is choking the health of its citizens at the cost of economic growth. Although the company had to face the hiccups from crisis to crisis, such as the Asian financial crisis in the late 90’s to the Great Recession, it has managed to, more or less, dodge them due to its wide exposure to the world, helping to offset volatility.

Cummins stock price ended the day at $135.47, down 0.53% from the previous day, despite the relatively bullish assessments from analysts and the company’s future drive. However, the future of the company regarding its endeavors is yet to be determined accurately.