Major Trannie, $CMI, Surges on Better Than Expected Quarter

CMI is often forgotten in this wide world of stocks. But they’re a major player in the transports, or as some of you faggots like to call them, ‘trannies.’ They make engines and parts for rail and trucks — supplying companies like $PCAR and $NAV.

In the past, CMI exhibited extreme earnings power — into upcycles. I view the company as one of the main cogs in America’s industrial wheel. On that note, shares are surging by 6% in the pre-market off better than expected results.

Reports Q1 (Mar) earnings of $2.36 per share, excluding non-recurring items, $0.56 better than the Capital IQ Consensus of $1.80; revenues rose 6.9% year/year to $4.59 bln vs the $4.15 bln Capital IQ Consensus.

Co issues raised guidance for FY17, sees FY17 revs of +4-7% from 0 to down 5% to ~$18.2-18.7 bln vs. $17.29 bln Capital IQ Consensus Estimate. EBIT expected to be in the range of 11.75 to 12.5 percent, up from 11 to 11.5 percent.

Earnings before interest and taxes were $566 million, or 12.3 percent of sales, an increase from $484 million or 11.3 percent of sales a year ago.

Both Daimler and Fiat-Chrysler are major customers of Cummins. I’d keep an eye on PCAR, NAV and FCAU today, off this news.