Ingersoll-Rand Misses on Revenue but Beats on EPS
Ingersoll-Rand (NYS: IR) reported earnings on Feb. 8. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Ingersoll-Rand missed estimates on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share increased significantly.
Margins increased across the board.
Ingersoll-Rand reported revenue of $3.51 billion. The 14 analysts polled by S&P Capital IQ predicted revenue of $3.58 billion. GAAP sales were 5.5% lower than the prior-year quarter's $3.71 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.76. The 20 earnings estimates compiled by S&P Capital IQ averaged $0.67 per share on the same basis. GAAP EPS of $0.77 for Q4 were 26% higher than the prior-year quarter's $0.61 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 28.5%, 110 basis points better than the prior-year quarter. Operating margin was 9.5%, 80 basis points better than the prior-year quarter. Net margin was 6.9%, 120 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $3.16 billion. On the bottom line, the average EPS estimate is $0.46.
Next year's average estimate for revenue is $14.65 billion. The average EPS estimate is $3.10.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,005 members out of 1,033 rating the stock outperform, and 28 members rating it underperform. Among 363 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 360 give Ingersoll-Rand a green thumbs-up, and three 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 $37.50.
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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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