Ingersoll-Rand Earnings: Exceeds Forecasts with BOOST of Profit

S&P 500 (NYSE:SPY) component Ingersoll-Rand plc (NYSE:IR) reported net income above Wall Street’s expectations for the second quarter. Ingersoll-Rand provides products and services to improve the quality and comfort of air in homes and buildings, transport and protect food and perishables and commercial properties.

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Ingersoll-Rand plc Earnings Cheat Sheet

Results: Net income for Ingersoll-Rand plc rose to $365.8 million ($1.16 per share) vs. $92.3 million (26 cents per share) in the same quarter a year earlier. This is a more than threefold rise from the year-earlier quarter.

Revenue: Fell 6.6% to $3.82 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Ingersoll-Rand plc reported adjusted net income of $1.15 per share. By that measure, the company beat the mean estimate of 90 cents per share. Analysts were expecting revenue of $3.88 billion.

Quoting Management: “Our results this quarter reflect the continued successful execution of our strategy to deliver profitable and sustainable growth,” said Michael W. Lamach, chairman and chief executive officer. “We are very pleased to have delivered another quarter of earnings per share growth that exceeded our forecast in the face of continued economic headwinds. While we expect the difficult economic environment to persist throughout 2012, our focus remains on accelerating revenue growth, further expanding operating margins and maintaining a balanced, disciplined capital allocation strategy. This focus reflects our confidence in Ingersoll Rand’s fundamental strengths and position, as well as our commitment to enhancing shareholder value.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 6 cents in the first quarter, by 9 cents in the fourth quarter of the last fiscal year, and by 2 cents in the third quarter of the last fiscal year.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the third quarter has moved down from 97 cents a share to 94 cents over the last ninety days. Over the past sixty days, the average estimate for the fiscal year has reached $3 per share, a decline from $3.05.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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