Ingersoll-Rand Shares Plunged: What You Need to Know
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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.
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At the time this article was published
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