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The company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 12.6%.
Let’s see how things have shaped up for Ingersoll Rand this earnings season.
Solid underlying demand and higher orders are likely to have driven Ingersoll Rand’s second-quarter performance.
Higher orders across the product portfolio of compressors and power tools and lifting are expected to have aided the Industrial Technologies & Services unit in the to-be-reported quarter. Contribution from the January 2023 acquisition of SPX FLOW’s Air Treatment business is also expected to have boosted the unit’s performance in the to-be-reported quarter. We expect the segment’s revenues to increase 11.4% from the year-ago reported number. We expect the segment’s adjusted EBITDA to increase 9.3% from the year-ago reported figure.
The Precision & Science Technologies segment is expected to reflect benefits from last October’s acquisition of Dosatron International, which has expanded Ingersoll Rand’s digital technology portfolio. Pricing actions are also expected to have supported the segment’s growth. Our estimate for the segment’s revenues indicates a 3.1% increase from second-quarter 2022 reported figure. Our estimate for the segment’s adjusted EBITDA suggests a 14.5% rise from second-quarter 2022 reported figure.
However, high raw material costs due to inflationary pressure might have hurt IR’s bottom line in the to-be-reported quarter. Also, foreign currency headwinds are likely to have dented its top-line 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, which is the case here, as elaborated below. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Earnings ESP: Ingersoll Rand has an Earnings ESP of +0.85% as the Most Accurate Estimate is pegged at 60 cents, higher than the Zacks Consensus Estimate of 59 cents.
Zacks Rank: Ingersoll Rand presently carries a Zacks Rank #3.
Highlights of Q1 Earnings
Ingersoll Rand reported first-quarter 2023 adjusted earnings of 63 cents per share, which beat the Zacks Consensus Estimate of earnings of 48 cents. The bottom line increased 40% year over year. Total revenues of $1,629.3 million outperformed the Zacks Consensus Estimate of $1,480 million. The top line increased 21.9% year over year on a 20.4% rise in organic revenues. Acquisitions contributed 5.8% to revenues, while foreign currency movements had an adverse impact of 4.3%.
Other Stocks to Consider
Here are some other companies within the broader Industrial Products sector, which according to our model, have the right combination of elements to beat on earnings this reporting cycle.
Emerson pulled off a trailing four-quarter earnings surprise of 4.5%, on average. The stock has gained 11.5% in the past three months.
Johnson Controls (JCI - Free Report) has an Earnings ESP of +0.24% and a Zacks Rank #3. The company is slated to release third-quarter fiscal 2023 earnings on Aug 2.
Johnson Controls delivered a trailing four-quarter earnings surprise of 1.4%, on average. The stock has rallied 15.8% in the past three months.
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Can Ingersoll Rand (IR) Retain Beat Streak in Q2 Earnings?
Ingersoll Rand Inc. (IR - Free Report) is scheduled to release second-quarter 2023 results on Aug 2, after market close.
The company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 12.6%.
Let’s see how things have shaped up for Ingersoll Rand this earnings season.
Ingersoll Rand Inc. Price and EPS Surprise
Ingersoll Rand Inc. price-eps-surprise | Ingersoll Rand Inc. Quote
Factors to Note
Solid underlying demand and higher orders are likely to have driven Ingersoll Rand’s second-quarter performance.
Higher orders across the product portfolio of compressors and power tools and lifting are expected to have aided the Industrial Technologies & Services unit in the to-be-reported quarter. Contribution from the January 2023 acquisition of SPX FLOW’s Air Treatment business is also expected to have boosted the unit’s performance in the to-be-reported quarter. We expect the segment’s revenues to increase 11.4% from the year-ago reported number. We expect the segment’s adjusted EBITDA to increase 9.3% from the year-ago reported figure.
The Precision & Science Technologies segment is expected to reflect benefits from last October’s acquisition of Dosatron International, which has expanded Ingersoll Rand’s digital technology portfolio. Pricing actions are also expected to have supported the segment’s growth. Our estimate for the segment’s revenues indicates a 3.1% increase from second-quarter 2022 reported figure. Our estimate for the segment’s adjusted EBITDA suggests a 14.5% rise from second-quarter 2022 reported figure.
However, high raw material costs due to inflationary pressure might have hurt IR’s bottom line in the to-be-reported quarter. Also, foreign currency headwinds are likely to have dented its top-line 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, which is the case here, as elaborated below. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Earnings ESP: Ingersoll Rand has an Earnings ESP of +0.85% as the Most Accurate Estimate is pegged at 60 cents, higher than the Zacks Consensus Estimate of 59 cents.
Zacks Rank: Ingersoll Rand presently carries a Zacks Rank #3.
Highlights of Q1 Earnings
Ingersoll Rand reported first-quarter 2023 adjusted earnings of 63 cents per share, which beat the Zacks Consensus Estimate of earnings of 48 cents. The bottom line increased 40% year over year. Total revenues of $1,629.3 million outperformed the Zacks Consensus Estimate of $1,480 million. The top line increased 21.9% year over year on a 20.4% rise in organic revenues. Acquisitions contributed 5.8% to revenues, while foreign currency movements had an adverse impact of 4.3%.
Other Stocks to Consider
Here are some other companies within the broader Industrial Products sector, which according to our model, have the right combination of elements to beat on earnings this reporting cycle.
Emerson Electric Co. (EMR - Free Report) has an Earnings ESP of +2.35% and a Zacks Rank #2. The company is scheduled to release third-quarter fiscal 2023 (ended Jun 30, 2023) results on Aug 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Emerson pulled off a trailing four-quarter earnings surprise of 4.5%, on average. The stock has gained 11.5% in the past three months.
Johnson Controls (JCI - Free Report) has an Earnings ESP of +0.24% and a Zacks Rank #3. The company is slated to release third-quarter fiscal 2023 earnings on Aug 2.
Johnson Controls delivered a trailing four-quarter earnings surprise of 1.4%, on average. The stock has rallied 15.8% in the past three months.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.