Ingersoll-Rand plc Earnings: Rise in Profit

S&P 500 (NYSE:SPY) component Ingersoll-Rand plc (NYSE:IR) reported net income above Wall Street’s expectations for the fourth 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 for the Fourth Quarter

Results: Net income for Ingersoll-Rand plc rose to $242.2 million (76 cents per share) vs. $212.1 million (62 cents per share) in the same quarter a year earlier. This marks a rise of 14.2% from the year earlier quarter.

Revenue: Fell 5% to $3.51 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: Ingersoll-Rand plc beat the mean analyst estimate of 67 cents per share. It fell short of the average revenue estimate of $3.59 billion.

Quoting Management: “In 2011, we improved the strength of our business operations, driving increased operating margins, and a 19 percent improvement in earnings per share despite a challenging economic backdrop in a number of our key residential and commercial building end markets,” said Michael W. Lamach, chairman, president and CEO. “We are pleased with the progress we made during this past year. We made notable improvements in pricing capabilities, productivity and working capital management that helped to drive the strong cash flow that supported our share buyback and dividend expansion. We have also taken the necessary actions to improve the performance of the residential HVAC business. Our management team is focused on accelerating restructuring and cost reduction actions to generate sustained profitable growth in what we expect to be a slow growth economy in 2012.”

Key Stats:

The company has now beaten estimates the last two quarters. In the third quarter, it topped expectations with net income of 81 cents versus a mean estimate of net income of 79 cents per share.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved down from 46 cents a share to 45 cents over the last ninety days. For the fiscal year, the average estimate has been unchanged at $2.72 a share.

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

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com