Ingersoll-Rand Crushes Earnings Estimates

Seth Jayson, The Motley Fool
Updated

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

The 10-second takeaway
For the quarter ended June 30 (Q2), Ingersoll-Rand Plc missed slightly on revenues and crushed expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share expanded significantly.


Margins improved across the board.

Revenue details
Ingersoll-Rand Plc logged revenue of $3.82 billion. The 15 analysts polled by S&P Capital IQ wanted to see net sales of $3.88 billion on the same basis. GAAP reported sales were 10% lower than the prior-year quarter's $4.26 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
EPS came in at $1.15. The 22 earnings estimates compiled by S&P Capital IQ predicted $0.91 per share. GAAP EPS of $1.16 for Q2 were 346% higher than the prior-year quarter's $0.26 per share. (The prior-year quarter included $0.45 per share in earnings from discontinued operations.)

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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 30.8%, 150 basis points better than the prior-year quarter. Operating margin was 12.4%, 70 basis points better than the prior-year quarter. Net margin was 9.6%, 740 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $3.67 billion. On the bottom line, the average EPS estimate is $0.99.

Next year's average estimate for revenue is $14.24 billion. The average EPS estimate is $3.14.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 983 members out of 1,012 rating the stock outperform, and 29 members rating it underperform. Among 297 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 292 give Ingersoll-Rand Plc 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 Plc is outperform, with an average price target of $45.95.

The article Ingersoll-Rand Crushes Earnings Estimates originally appeared on Fool.com.

Seth Jaysonhad 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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