The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Ingersoll-Rand Plc missed slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share increased significantly.
Margins grew across the board.
Ingersoll-Rand Plc logged revenue of $3.59 billion. The 14 analysts polled by S&P Capital IQ foresaw a top line of $3.65 billion on the same basis. GAAP reported sales were 8.5% lower than the prior-year quarter's $3.93 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 $1.07. The 20 earnings estimates compiled by S&P Capital IQ forecast $0.98 per share. GAAP EPS of $1.03 for Q3 were 312% higher than the prior-year quarter's $0.25 per share. (The prior-year quarter included -$0.03 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 31.7%, 210 basis points better than the prior-year quarter. Operating margin was 12.5%, 80 basis points better than the prior-year quarter. Net margin was 9.0%, 680 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $3.50 billion. On the bottom line, the average EPS estimate is $0.77.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 974 members out of 1,005 rating the stock outperform, and 31 members rating it underperform. Among 315 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 310 give Ingersoll-Rand Plc a green thumbs-up, and five give it a red thumbs-down.
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