Ingersoll-Rand Earnings: This Data is Causing Shares to Drop

S&P 500 (NYSE:SPY) component Ingersoll-Rand plc (NYSE:IR) reported net income above Wall Street’s expectations for the third 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 $321.6 million ($1.03 per share) vs. $86.2 million (25 cents per share) in the same quarter a year earlier. This is a more than threefold rise from the year-earlier quarter, which included a large one-time impairment loss.

Revenue: Fell 8.1% to $3.59 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Ingersoll-Rand plc reported adjusted net income of $1.07 per share. By that measure, the company beat the mean estimate of 90 cents per share. It fell short of the average revenue estimate of $3.88 billion.

Quoting Management: “We have delivered on our strategy to increase profitability and shareholder value with solid third-quarter earnings per share that exceeded our forecast,” said Michael W. Lamach, chairman and chief executive officer. “We are continuing to generate significant operating leverage while we invest in future growth platforms. I believe the combination of our strategy and a sound use of capital will drive strong earnings growth in the coming years, even if economies do not improve. We will remain focused on organic revenue growth, expansion of operating margins and a balanced, disciplined capital allocation strategy in the face of expected economic headwinds.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 6 cents in the second quarter, by 9 cents in the first quarter, and by 2 cents in the fourth 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 fourth quarter has moved down from 97 cents a share to 94 cents over the last ninety days. For the fiscal year, the average estimate has moved down from $3.05 a share to $3 over the last sixty days.

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

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