Ingersoll-Rand Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Ingersoll-Rand (NYSE:IR) will unveil its latest earnings tomorrow, Friday, February 1, 2013.  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.

Ingersoll-Rand Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 70 cents per share, a decline of 7.9% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 14.5% compared to last year’s $3.23.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 8 cents, reporting net income of $1.07 per share against a mean estimate of profit of 99 cents per share.

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A Look Back: In the third quarter, profit rose more than threefold to $321.6 million ($1.03 a share) from $86.2 million (25 cents a share) the year earlier, exceeding analyst expectations. Revenue fell 8.5% to $3.59 billion from $3.93 billion.

Here’s how Ingersoll-Rand traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

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Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.21 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 1.37 in the second quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 10.7% to $4.33 billion while assets decreased 2.6% to $5.23 billion.

Analyst Ratings: There are mostly holds on the stock with nine of 15 analysts surveyed giving that rating.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 1.8% in the second quarter and dropped again in the third quarter.

Wall St. Revenue Expectations: Analysts are projecting a decline of 1.4% in revenue from the year-earlier quarter to $3.46 billion.

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