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Ingersoll Rand (IR) to Post Q3 Earnings: What's in the Offing?
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Ingersoll Rand Inc. (IR - Free Report) is scheduled to release third-quarter 2021 results on Nov 03, after market close.
The company’s earnings surpassed estimates in each of the last four quarters, the average surprise being 21.06%. Its second-quarter 2021 earnings of 46 cents per share surpassed the Zacks Consensus Estimate of 40 cents by 15.00%.
Image Source: Zacks Investment Research
In the past three months, the stock has gained 11.1% against the industry’s decline of 4.2%.
Factors at Play
Strength in the aftermarket businesses, coupled with its solid product portfolio, is anticipated to have been beneficial for Ingersoll Rand in the third quarter. Solid momentum across the company’s medical and Dosatron units, driven by an improvement in demand across the AgriTech and industrial water treatment markets, might have boosted its performance in the quarter.
Acquisitions made by the company positively impacted its revenues by 2.6% in second-quarter 2021. The trend is likely to have continued in the to-be-reported quarter as well, given the strength across its acquired businesses. The company acquired Albin Pump SAS in September 2020, which has strengthened its pump and fluid technologies offerings. Ingersoll Rand’s buyout of Tuthill Vacuum and Blower Systems (February 2021) has been boosting its existing vacuum and blower product offerings. Also, its buyout of Maximus (August 2021) has been boosting its prospects in rural water treatment and industrial markets. For 2021, it anticipates a revenue contribution of $60 million from the buyout/mergers.
The company’s investment in digital, IoT, and e-commerce space is likely to have supported its performance in the third quarter. Its cost reduction actions are also likely to have helped it maintain a healthy margin performance in the quarter.
However, its divestment of the Specialty Vehicle Technologies (June 2021) segment might have affected its top-line performance in the third quarter on a year-over-year comparable basis. Also, over the past few quarters, a rising cost of sales and operating expenses have been a concern for Ingersoll Rand. In second-quarter 2021, its cost of sales increased 6.9% year over year while selling and administrative expenses surged 27.8%. High costs and expenses might have adversely impacted its margin and profitability in the to-be-reported quarter as well.
The Zacks Consensus Estimate for the company’s third-quarter total revenues is currently pegged at $1,274 million, suggesting 4.6% and 0.4% decline from the year-ago and quarter-ago reported numbers, respectively.
According to our quantitative model, a stock needs to have the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or at least 3 (Hold) to increase the odds of an earnings beat. But that is not the case here as we will see below.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Ingersoll Rand has an Earnings ESP of -2.70%, as the Most Accurate Estimate is pegged at 45 cents, lower than the Zacks Consensus Estimate of 46 cents.
Zacks Rank: The company carries a Zacks Rank #3.
Key Picks
Here are some companies you may want to consider from the Zacks Industrial Products sector as our model shows that these have the right combination of elements to deliver an earnings beat this season:
Image: Bigstock
Ingersoll Rand (IR) to Post Q3 Earnings: What's in the Offing?
Ingersoll Rand Inc. (IR - Free Report) is scheduled to release third-quarter 2021 results on Nov 03, after market close.
The company’s earnings surpassed estimates in each of the last four quarters, the average surprise being 21.06%. Its second-quarter 2021 earnings of 46 cents per share surpassed the Zacks Consensus Estimate of 40 cents by 15.00%.
In the past three months, the stock has gained 11.1% against the industry’s decline of 4.2%.
Factors at Play
Strength in the aftermarket businesses, coupled with its solid product portfolio, is anticipated to have been beneficial for Ingersoll Rand in the third quarter. Solid momentum across the company’s medical and Dosatron units, driven by an improvement in demand across the AgriTech and industrial water treatment markets, might have boosted its performance in the quarter.
Acquisitions made by the company positively impacted its revenues by 2.6% in second-quarter 2021. The trend is likely to have continued in the to-be-reported quarter as well, given the strength across its acquired businesses. The company acquired Albin Pump SAS in September 2020, which has strengthened its pump and fluid technologies offerings. Ingersoll Rand’s buyout of Tuthill Vacuum and Blower Systems (February 2021) has been boosting its existing vacuum and blower product offerings. Also, its buyout of Maximus (August 2021) has been boosting its prospects in rural water treatment and industrial markets. For 2021, it anticipates a revenue contribution of $60 million from the buyout/mergers.
The company’s investment in digital, IoT, and e-commerce space is likely to have supported its performance in the third quarter. Its cost reduction actions are also likely to have helped it maintain a healthy margin performance in the quarter.
However, its divestment of the Specialty Vehicle Technologies (June 2021) segment might have affected its top-line performance in the third quarter on a year-over-year comparable basis. Also, over the past few quarters, a rising cost of sales and operating expenses have been a concern for Ingersoll Rand. In second-quarter 2021, its cost of sales increased 6.9% year over year while selling and administrative expenses surged 27.8%. High costs and expenses might have adversely impacted its margin and profitability in the to-be-reported quarter as well.
The Zacks Consensus Estimate for the company’s third-quarter total revenues is currently pegged at $1,274 million, suggesting 4.6% and 0.4% decline from the year-ago and quarter-ago reported numbers, respectively.
Ingersoll Rand Inc. Price and EPS Surprise
Ingersoll Rand Inc. price-eps-surprise | Ingersoll Rand Inc. Quote
Earnings Whispers
According to our quantitative model, a stock needs to have the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or at least 3 (Hold) to increase the odds of an earnings beat. But that is not the case here as we will see below.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Ingersoll Rand has an Earnings ESP of -2.70%, as the Most Accurate Estimate is pegged at 45 cents, lower than the Zacks Consensus Estimate of 46 cents.
Zacks Rank: The company carries a Zacks Rank #3.
Key Picks
Here are some companies you may want to consider from the Zacks Industrial Products sector as our model shows that these have the right combination of elements to deliver an earnings beat this season:
Deere & Company (DE - Free Report) has an Earnings ESP of +5.55% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Johnson Controls International plc (JCI - Free Report) has an Earnings ESP of +0.17% and a Zacks Rank of 2, at present.
The Middleby Corporation (MIDD - Free Report) has an Earnings ESP of +1.54% and a Zacks Rank #3.