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Ingersoll (IR) to Post Q4 Earnings: Is a Beat in the Cards?
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Ingersoll Rand Inc. (IR - Free Report) is scheduled to release fourth-quarter 2020 results on Feb 22, after market close.
The company surpassed estimates thrice and missed once in the last four quarters, the positive earnings surprise being 17.37%, on average. Its third-quarter 2020 earnings of 40 cents per share surpassed the Zacks Consensus Estimate of 31 cents by 29.03%.
In the past six months, the company’s shares have gained 23.5% compared with the industry’s growth of 12.7%.
Factors at Play
Ingersoll Rand is likely to have gained from its solid product portfolio, innovation capabilities and focus on expanding its aftermarket businesses in the fourth quarter. Also, the company’s investments in digital, IoT and e-commerce space are likely to have supplemented its performance in the fourth quarter.
Also, in third-quarter 2020, buyouts positively impacted the company’s revenues by 0.3%, a trend which is likely to have continued in the fourth quarter, given the strength in its acquired Albin Pump SAS business. Notably, the acquisition (closed in September 2020), which has been boosting its growth opportunities in the fluid management space, is likely to have augmented its fourth-quarter revenues. For the fourth quarter, the company anticipates revenues to grow sequentially.
In addition Ingersoll Rand’s exposure in several end markets — including industrial manufacturing, mining & construction, chemical, upstream energy, midstream energy, transportation and downstream energy — is anticipated to have helped it in dealing with the coronavirus outbreak-led difficulties.
In addition, some of the company’s cost reduction actions are likely to have helped it maintain a solid margin in the to-be-reported quarter.
However, unfavorable product mix might have hurt the performance of the Precision & Science Technologies segment in the to-be-reported quarter. Also, shift toward growth opportunities (which generally carries low margins) is likely to have affected its Specialty Vehicle Technologies’ performance.
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 +0.88%.
Zacks Rank: Ingersoll Rand carries a Zacks Rank #2.
Other Key Picks
Here are some other companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter:
The Middleby Corporation (MIDD - Free Report) currently has a Zacks Rank #2 and an Earnings ESP of +6.20%.
Cintas Corporation (CTAS - Free Report) presently has a Zacks Rank #3 and an Earnings ESP of +2.17%.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
Image: Bigstock
Ingersoll (IR) to Post Q4 Earnings: Is a Beat in the Cards?
Ingersoll Rand Inc. (IR - Free Report) is scheduled to release fourth-quarter 2020 results on Feb 22, after market close.
The company surpassed estimates thrice and missed once in the last four quarters, the positive earnings surprise being 17.37%, on average. Its third-quarter 2020 earnings of 40 cents per share surpassed the Zacks Consensus Estimate of 31 cents by 29.03%.
In the past six months, the company’s shares have gained 23.5% compared with the industry’s growth of 12.7%.
Factors at Play
Ingersoll Rand is likely to have gained from its solid product portfolio, innovation capabilities and focus on expanding its aftermarket businesses in the fourth quarter. Also, the company’s investments in digital, IoT and e-commerce space are likely to have supplemented its performance in the fourth quarter.
Also, in third-quarter 2020, buyouts positively impacted the company’s revenues by 0.3%, a trend which is likely to have continued in the fourth quarter, given the strength in its acquired Albin Pump SAS business. Notably, the acquisition (closed in September 2020), which has been boosting its growth opportunities in the fluid management space, is likely to have augmented its fourth-quarter revenues. For the fourth quarter, the company anticipates revenues to grow sequentially.
In addition Ingersoll Rand’s exposure in several end markets — including industrial manufacturing, mining & construction, chemical, upstream energy, midstream energy, transportation and downstream energy — is anticipated to have helped it in dealing with the coronavirus outbreak-led difficulties.
In addition, some of the company’s cost reduction actions are likely to have helped it maintain a solid margin in the to-be-reported quarter.
However, unfavorable product mix might have hurt the performance of the Precision & Science Technologies segment in the to-be-reported quarter. Also, shift toward growth opportunities (which generally carries low margins) is likely to have affected its Specialty Vehicle Technologies’ performance.
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 +0.88%.
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 #2.
Other Key Picks
Here are some other companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Axon Enterprise, Inc (AXON - Free Report) has an Earnings ESP of +3.86% and a Zacks Rank #2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Middleby Corporation (MIDD - Free Report) currently has a Zacks Rank #2 and an Earnings ESP of +6.20%.
Cintas Corporation (CTAS - Free Report) presently has a Zacks Rank #3 and an Earnings ESP of +2.17%.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>