Ingersoll-Rand Shares Plunged: What You Need to Know

Before you go, we thought you'd like these...
Before you go close icon

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Ingersoll-Rand (NYS: IR) have plunged today by as much as 10% after the company reported third-quarter earnings and provided weak guidance.

So what: Revenue rose 5% to $3.93 billion for the quarter and adjusted earnings per share was $0.81. The company took an asset impairment charge related to its sale of its Hussmann business that adversely affected the bottom line to the tune of $265 million.

Now what: Next quarter, the company expects to see earnings per share between $0.64 and $0.70, which is a little light as analysts are looking for $0.70. Macroeconomic headwinds and a soft housing market are weighing on demand for the company's products, which include Schlage locks and Trane air conditioners. Ingersoll-Rand CEO Michael Lamach added, "We are seeing challenging economic conditions in our residential heating ventilation and air conditioning (HVAC), security and golf businesses, as reflected in our revised guidance." Hopefully, the housing market will pick up sooner than later, then demand may rebound for Ingersoll-Rand's brands.

Interested in more info on Ingersoll-Rand? Add it to your watchlist byclicking here.

At the time this article was published

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners