Ingersoll-Rand Beats on Both Top and Bottom Lines

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Ingersoll-Rand (NYS: IR) reported earnings on April 20. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Ingersoll-Rand beat expectations on revenues and earnings per share.

Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share improved.


Gross margins grew, operating margins contracted, and net margins improved.

Revenue details
Ingersoll-Rand recorded revenue of $3.15 billion. The 15 analysts polled by S&P Capital IQ looked for sales of $3.03 billion on the same basis. GAAP reported sales were 0.4% higher than the prior-year quarter's $3.14 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.31. The 22 earnings estimates compiled by S&P Capital IQ anticipated $0.27 per share on the same basis. GAAP EPS were $0.30 for Q1 against -$0.22 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 28.6%, 30 basis points better than the prior-year quarter. Operating margin was 6.7%, 70 basis points worse than the prior-year quarter. Net margin was 3.0%, 550 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $3.90 billion. On the bottom line, the average EPS estimate is $0.97.

Next year's average estimate for revenue is $14.40 billion. The average EPS estimate is $3.05.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 984 members out of 1,014 rating the stock outperform, and 30 members rating it underperform. Among 322 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 317 give Ingersoll-Rand a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ingersoll-Rand is outperform, with an average price target of $43.95.

At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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