Ingersoll-Rand Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Ingersoll-Rand (NYSE:IR) will unveil its latest earnings on Friday, October 19, 2012. 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 analyst estimate is for net income of 99 cents per share, a rise of 22.2% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from 94 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 99 cents during the last month. For the year, analysts are projecting profit of $3.23 per share, a rise of 14.5% from last year.

Past Earnings Performance: Last quarter, the company beat estimates by 24 cents, coming in at net income of $1.15 a share versus the estimate of profit of 91 cents a share. It marked the fourth straight quarter of beating estimates.

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A Look Back: In the second quarter, profit rose more than threefold to $365.8 million ($1.16 a share) from $92.3 million (26 cents a share) the year earlier, exceeding analyst expectations. Revenue fell 1.8% to $3.82 billion from $3.89 billion.

Stock Price Performance: Between July 20, 2012 and October 15, 2012, the stock price rose $4.24 (10.5%), from $40.25 to $44.49. The stock price saw one of its best stretches over the last year between August 1, 2012 and August 10, 2012, when shares rose for eight straight days, increasing 7.6% (+$3.20) over that span. It saw one of its worst periods between July 3, 2012 and July 12, 2012 when shares fell for seven straight days, dropping 7.8% (-$3.37) over that span.

Wall St. Revenue Expectations: Analysts are projecting a decline of 7.1% in revenue from the year-earlier quarter to $3.65 billion.

Key Stats:

On the top line, the company is looking to rebound after a revenue drop last quarter. Revenue rose 0.4% in the the first quarter after dropping in the second quarter.

Analyst Ratings: There are mostly holds on the stock with nine of 17 analysts surveyed giving that rating.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.37 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.

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

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