Valued at a market cap of $38.8 billion, Cummins Inc. (CMI) offers various power solutions worldwide. The Columbus, Indiana-located company operates through Engine, Distribution, Components, Power Systems, and Accelera segments. 

The company is expected to release its Q1 2025 earnings before the market opens on Monday, May 5. Ahead of this event, analysts expect Cummins to post adjusted earnings of $4.83 per share, down 5.3% from $5.10 per share in the same quarter last year. The company has surpassed Wall Street's bottom-line estimates in three of the past four quarters while missing on another occasion.

For fiscal 2025, analysts expect CMI to report an adjusted EPS of $21.22, a marginal decline from $21.37 in fiscal 2024. However, its earnings are expected to surge 20.2% year-over-year to $25.50 per share in fiscal 2026.

Shares of CMI have dipped 3.3% over the past 52 weeks, underperforming the S&P 500 Index's ($SPX) 5.4% rise and the Industrial Select Sector SPDR Fund’s (XLI) 3.5% gain during the same period.

CMI stock rose 4.4% following the release of its strong Q4 2024 results on Feb. 4. The company surpassed Wall Street expectations with its Q4 results, reporting revenue of $8.4 billion, well above the consensus estimate of $8.1 billion. Sales in its Accelera segment were up 23% year-over-year to $100 million, driven by increased eMobility demand. EPS also came in strong at $3.02, compared to a loss of $10.01 per share in the same quarter last year.

In addition, for fiscal 2025, Cummins projects revenue to range between a 2% decline and a 3% increase year-over-year, while forecasting EBITDA margins in the range of 16.2% to 17.2%.

Analysts' consensus view on Cummins is cautious, with a "Hold" rating overall. Among 17 analysts covering the stock, four suggest a "Strong Buy," 12 give a "Hold," and one recommends a "Strong Sell” rating. Its mean price target of $352.77 represents a 25.2% premium to current price levels.