Shares of Cummins Inc. CMI, -1.80% fell 1.4% in premarket trading Tuesday, after the auto engine power generation products company reported third-quarter profit that missed expectations while sales beat, and lowered its full-year outlook. Net income for the quarter to Oct. 3 rose to $534 million, or $3.69 a share, form $501 million, or $3.36 a share, in the year-ago period. The FactSet consensus for earnings per share was $3.89. Sales grew 16.6% to $5.97 billion, above the FactSet consensus of $5.87 billion, while cost of sales increased 20.8% to $4.55 billion. Among Cummins’ business segments, engine, distribution and power systems sales topped expectations while components missed. The company said that order activity, freight rates and used equipment prices remain strong, but supply chain constraints are resulting in rising material costs, elevating logistics expenses and creating manufacturing inefficiencies. For 2021, the company cut its revenue growth guidance to “approximately” 20% from 20% to 24%. Cummins’ stock has gained 7.1% over the past three months through Monday, while the S&P 500 SPX, +0.14% has tacked on 5.2%.
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