The 10-second takeaway
For the quarter ended March 31 (Q1), Ingersoll-Rand Plc missed slightly on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly. Non-GAAP earnings per share grew significantly. GAAP earnings per share contracted.
Gross margins expanded, operating margins shrank, net margins shrank.
Ingersoll-Rand Plc reported revenue of $3.11 billion. The 15 analysts polled by S&P Capital IQ looked for a top line of $3.17 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.42. The 21 earnings estimates compiled by S&P Capital IQ predicted $0.41 per share. Non-GAAP EPS of $0.42 for Q1 were 35% higher than the prior-year quarter's $0.31 per share. (The prior-year quarter included -$0.01 per share in earnings from discontinued operations.) GAAP EPS of $0.29 for Q1 were 3.3% lower than the prior-year quarter's $0.30 per share. (The prior-year quarter included -$0.01 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 29.6%, 70 basis points better than the prior-year quarter. Operating margin was 6.2%, 110 basis points worse than the prior-year quarter. Net margin was 2.8%, 20 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $3.96 billion. On the bottom line, the average EPS estimate is $1.12.
Next year's average estimate for revenue is $14.54 billion. The average EPS estimate is $3.62.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 971 members out of 999 rating the stock outperform, and 28 members rating it underperform. Among 323 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 318 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 $56.94.
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