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Ingersoll (IR) to Post Q3 Earnings: Is a Beat in Store?

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Ingersoll Rand Inc. (IR - Free Report) is scheduled to release third-quarter 2020 results on Nov 2, after market close.

The company surpassed estimates thrice and missed once in the last four quarters, the positive earnings surprise being 12.81%, on average. Its second-quarter 2020 earnings of 31 cents per share surpassed the Zacks Consensus Estimate of 21 cents by 47.62%.

In the past three months, the company’s shares have gained 12.2% compared with the industry’s growth of 5%.

Factors at Play

Ingersoll Rand is expected to have benefited from its strong product portfolio, innovation capabilities and focus on expanding its aftermarket businesses in the third quarter. Also, growth in demand for the company’s medical products and solutions is likely to have supplemented its top-line performance in the third quarter.

Also, the company’s exposure in various end markets — including industrial manufacturing, mining & construction, chemical, upstream energy, midstream energy, transportation and downstream energy — is likely to have aided it in dealing with the coronavirus outbreak-led difficulties.

Moreover, in response to the crisis, the company has taken some cost-saving measures, including hiring freeze, furloughs, restricted discretionary spending and other. These actions yielded $40 million of savings in the second quarter of 2020, a trend that likely continued in the third quarter as well.

However, the negative impact of the pandemic on the demand for its products and services are expected to get reflected in Ingersoll Rand’s third-quarter results. Moreover, given the company’s diverse geographic presence, its operations are subject to global economic and political risks as well as forex woes. A stronger U.S. dollar might have hurt the company's overseas business in the third quarter.

Earnings Whispers

Our proven model suggests an earnings beat for Ingersoll Rand this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: The company has an Earnings ESP of +5.38% as the Most Accurate Estimate is pegged at 33 cents, higher than the Zacks Consensus Estimate of 31 cents.

Ingersoll Rand Inc. Price and EPS Surprise

Ingersoll Rand Inc. Price and EPS Surprise

Ingersoll Rand Inc. price-eps-surprise | Ingersoll Rand Inc. Quote

Zacks Rank: Ingersoll Rand carries a Zacks Rank #3.

Other Key Picks

Here are some other companies you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this season:

Plug Power, Inc. (PLUG - Free Report) has an Earnings ESP of +31.03% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Parker Hannifin Corporation (PH - Free Report) has an Earnings ESP of +5.44% and a Zacks Rank of 2, at present.

Eaton Corporation, plc (ETN - Free Report) has an Earnings ESP of +4.98% and a Zacks Rank of 3.

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