The 10-second takeaway
For the quarter ended March 31 (Q1), Ingersoll-Rand beat expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share improved.
Gross margins grew, operating margins contracted, and net margins improved.
Ingersoll-Rand recorded revenue of $3.15 billion. The 15 analysts polled by S&P Capital IQ looked for sales of $3.03 billion on the same basis. GAAP reported sales were 0.4% higher than the prior-year quarter's $3.14 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.31. The 22 earnings estimates compiled by S&P Capital IQ anticipated $0.27 per share on the same basis. GAAP EPS were $0.30 for Q1 against -$0.22 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 28.6%, 30 basis points better than the prior-year quarter. Operating margin was 6.7%, 70 basis points worse than the prior-year quarter. Net margin was 3.0%, 550 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $3.90 billion. On the bottom line, the average EPS estimate is $0.97.
Next year's average estimate for revenue is $14.40 billion. The average EPS estimate is $3.05.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 984 members out of 1,014 rating the stock outperform, and 30 members rating it underperform. Among 322 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 317 give Ingersoll-Rand a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ingersoll-Rand is outperform, with an average price target of $43.95.
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