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Cummins posts quarterly earnings beat on strong need for power products from data centers

Cummins Inc beat thirdquarter revenue quotes on Tuesday, due to robust need for its power generation items from information centers, sending the shares of the company up more than 4% in premarket trading.

Rising demand from the technology industry's energy-hungry AI data centers has reinforced the results of power option providers in current quarters.

Indiana-based Cummins saw double-digit profits growth in its Distribution sector, which is taken part in wholesaling power generation products and carrying out repair work activities, and its Power Systems sector, which creates and sells engines for industrial applications.

The strong efficiency offset declines in the Parts and Engine Segments due to weakness in the North American durable truck market, where Cummins products engines and associated parts.

The business anticipates the pattern to continue the 4th quarter.

Cummins reported third-quarter earnings of $8.45 billion, above analysts' price quotes of $8.30 billion, according to data put together by LSEG.

The company's third-quarter earnings per share of $5.86 likewise beat experts' typical quotes of $4.80 per share.

Core earnings or EBITDA was available in at $1.4 billion, or 16.4% of sales, compared to $1.2 billion, or 14.6% of sales, a year earlier.

(source: Reuters)