Ingersoll-Rand Plc Earnings: Here’s Why Investors are Not Happy Now

Ingersoll-Rand Plc (NYSE:IR) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 3.7%.

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Ingersoll-Rand Plc Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 35.48% to $0.42 in the quarter versus EPS of $0.31 in the year-earlier quarter.

Revenue: Decreased 1.22% to $3.11 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Ingersoll-Rand Plc reported adjusted EPS income of $0.42 per share. By that measure, the company beat the mean analyst estimate of $0.40. It missed the average revenue estimate of $3.17 billion.

Quoting Management: “In the first quarter, we realized solid results from our strategy to increase profitability and shareholder value, achieving a 14 percent year-over-year increase in adjusted EPS from continuing operations,” said Michael W. Lamach, chairman and chief executive officer. “We anticipate a continued macro-economic environment of low revenue growth throughout 2013. With that backdrop, we will continue to drive our operational excellence initiatives to improve margin, execute the planned new security company spinoff and make progress against our core initiatives. In addition, we continue to consistently deliver returns to shareholders, including the initiation of a $2 billion share repurchase program this month.”

Key Stats (on next page)…

Revenue decreased 10.31% from $3.47 billion in the previous quarter. EPS decreased 44.74% from $0.76 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.12 to a profit $1.13. For the current year, the average estimate has moved up from a profit of $3.59 to a profit of $3.61 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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