Strong Orders Send Cummins Sales Higher, but Investors Want More Earnings Growth
After years of poor performance, the industrial sector of the economy is finally starting to bounce back. Greater levels of activity in key areas like construction, infrastructure, and natural resources have plenty of positive implications for engine specialist Cummins (NYSE: CMI). Shareholders have anticipated that a rising emphasis on infrastructure improvements would lead to better performance from Cummins, and those expectations have helped send the stock sharply higher over the past year despite more measured commentary from company executives about the speed at which the industry will recover.
Coming into Tuesday's second-quarter financial report, Cummins investors wanted to see significant gains in earnings and sales from the engine maker. The company was only able to deliver a positive surprise on its top line, falling short on the net income front and disappointing shareholders in the process. Let's look more closely at Cummins and what its latest report says about what's happening with the company.
Image source: Cummins.
Source: Fool.com