The 10-second takeaway
For the quarter ended June 30 (Q2), Ingersoll-Rand Plc missed slightly on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share expanded significantly.
Margins improved across the board.
Ingersoll-Rand Plc logged revenue of $3.82 billion. The 15 analysts polled by S&P Capital IQ wanted to see net sales of $3.88 billion on the same basis. GAAP reported sales were 10% lower than the prior-year quarter's $4.26 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.15. The 22 earnings estimates compiled by S&P Capital IQ predicted $0.91 per share. GAAP EPS of $1.16 for Q2 were 346% higher than the prior-year quarter's $0.26 per share. (The prior-year quarter included $0.45 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 30.8%, 150 basis points better than the prior-year quarter. Operating margin was 12.4%, 70 basis points better than the prior-year quarter. Net margin was 9.6%, 740 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $3.67 billion. On the bottom line, the average EPS estimate is $0.99.
Next year's average estimate for revenue is $14.24 billion. The average EPS estimate is $3.14.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 983 members out of 1,012 rating the stock outperform, and 29 members rating it underperform. Among 297 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 292 give Ingersoll-Rand Plc 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 Plc is outperform, with an average price target of $45.95.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.