Ingersoll-Rand Plc Beats Up on Analysts Yet Again

Seth Jayson, The Motley Fool
Updated

Ingersoll-Rand Plc (NYS: IR) reported earnings on Feb. 1. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Dec. 31 (Q4), Ingersoll-Rand Plc met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share didn't change.


Gross margins grew, operating margins expanded, net margins dropped.

Revenue details
 Ingersoll-Rand Plc chalked up revenue of $3.47 billion. The 15 analysts polled by S&P Capital IQ looked for a top line of $3.46 billion on the same basis. GAAP reported sales were 0.5% higher than the prior-year quarter's $3.45 billion.

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 $0.76. The 21 earnings estimates compiled by S&P Capital IQ predicted $0.71 per share. GAAP EPS of $0.77 were the same as the prior-year quarter.

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 30.5%, 170 basis points better than the prior-year quarter. Operating margin was 10.6%, 70 basis points better than the prior-year quarter. Net margin was 6.8%, 20 basis points worse than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $3.18 billion. On the bottom line, the average EPS estimate is $0.48.

Next year's average estimate for revenue is $14.59 billion. The average EPS estimate is $3.62.

Investor sentiment
 The stock has a five-star rating (out of five) at Motley Fool CAPS, with 972 members out of 1,001 rating the stock outperform, and 29 members rating it underperform. Among 354 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 349 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 $50.79.

Looking for alternatives to Ingersoll-Rand Plc? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.

The article Ingersoll-Rand Plc Beats Up on Analysts Yet Again originally appeared on Fool.com.

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. The Motley Fool has no position in any of the stocks mentioned. 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.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement