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The company has a stellar earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 16.1%. Its bottom line surpassed the Zacks Consensus Estimate by 10% in the last reported quarter.
Let’s see how things have shaped up for Ingersoll Rand this earnings season.
Key Factors and Estimates for Q4
Solid demand and higher orders within the Industrial Technologies & Services segment are expected to drive Ingersoll Rand’s fourth-quarter results. Strong orders across its product portfolio of compressors, vacuum and blowers, and power tools are likely to have driven revenues for the segment.
Synergistic gains from the acquisitions of Howden Roots (August 2023) and SPX FLOW’s Air Treatment business (January 2023) are expected to have boosted revenues in the to-be-reported quarter. We project the Industrial Technologies & Services segment’s quarterly revenues to increase 7.2% from the year-ago levels.
Strength in the industrial businesses along with pricing actions and contributions from acquisitions is likely to have been key growth driver for the Precision & Science Technologies segment. However, weakness in the life sciences business due to continued softness in oxygen concentration and biopharma end markets might have marred segmental performance in the quarter under discussion.
Nevertheless, the acquisition of Dosatron International (October 2022), which expanded its digital technology portfolio, is likely to have augmented the Precision & Science Technologies segment’s top-line growth. Also, the Westwood Technical Limited buyout (September 2022) expanded the segment’s IIoT offerings. We expect the segment’s quarterly revenues to jump 3.3% from the prior-year levels.
The company has been witnessing escalating cost of sales, and selling and administrative expenses, which is likely to weigh on its bottom-line results. For the quarter under review, we expect SG&A expenses to rise 14.2% from the year-earlier levels to $315 million. Also, given the company’s substantial international operations, foreign currency headwinds might affect the top-line results.
Our proven model doesn’t conclusively predict 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, but that’s not the case here, as elaborated below.
IR has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
IR has a Zacks Rank #3 at present.
Stocks With Favorable Combination
Here are three companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases.
FLS delivered a trailing four-quarter earnings surprise of 27.3%, on average.
Alarm.com Holdings (ALRM - Free Report) has an Earnings ESP of +8.79% and a Zacks Rank #3. It is scheduled to post fourth-quarter numbers on Feb 22. ALRM delivered a trailing four-quarter earnings surprise of 35%, on average.
Nordson Corporation (NDSN - Free Report) has an Earnings ESP of +3.25% and a Zacks Rank #3. It is set to report fourth-quarter figures on Feb 21. NDSN delivered a trailing four-quarter earnings surprise of 2.6%, on average.
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Here's What to Note Ahead of Ingersoll Rand's (IR) Q4 Earnings
Ingersoll Rand Inc. (IR - Free Report) is scheduled to release fourth-quarter 2023 results on Feb 15, after market close.
The company has a stellar earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 16.1%. Its bottom line surpassed the Zacks Consensus Estimate by 10% in the last reported quarter.
Let’s see how things have shaped up for Ingersoll Rand this earnings season.
Key Factors and Estimates for Q4
Solid demand and higher orders within the Industrial Technologies & Services segment are expected to drive Ingersoll Rand’s fourth-quarter results. Strong orders across its product portfolio of compressors, vacuum and blowers, and power tools are likely to have driven revenues for the segment.
Synergistic gains from the acquisitions of Howden Roots (August 2023) and SPX FLOW’s Air Treatment business (January 2023) are expected to have boosted revenues in the to-be-reported quarter. We project the Industrial Technologies & Services segment’s quarterly revenues to increase 7.2% from the year-ago levels.
Strength in the industrial businesses along with pricing actions and contributions from acquisitions is likely to have been key growth driver for the Precision & Science Technologies segment. However, weakness in the life sciences business due to continued softness in oxygen concentration and biopharma end markets might have marred segmental performance in the quarter under discussion.
Nevertheless, the acquisition of Dosatron International (October 2022), which expanded its digital technology portfolio, is likely to have augmented the Precision & Science Technologies segment’s top-line growth. Also, the Westwood Technical Limited buyout (September 2022) expanded the segment’s IIoT offerings. We expect the segment’s quarterly revenues to jump 3.3% from the prior-year levels.
The company has been witnessing escalating cost of sales, and selling and administrative expenses, which is likely to weigh on its bottom-line results. For the quarter under review, we expect SG&A expenses to rise 14.2% from the year-earlier levels to $315 million. Also, given the company’s substantial international operations, foreign currency headwinds might affect the top-line results.
Ingersoll Rand Inc. Price and EPS Surprise
Ingersoll Rand Inc. price-eps-surprise | Ingersoll Rand Inc. Quote
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict 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, but that’s not the case here, as elaborated below.
IR has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
IR has a Zacks Rank #3 at present.
Stocks With Favorable Combination
Here are three companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases.
Flowserve Corporation (FLS - Free Report) has an Earnings ESP of +1.22% and a Zacks Rank #2. It is slated to release fourth-quarter results on Feb 20. You can see the complete list of today’s Zacks #1 Rank stocks here.
FLS delivered a trailing four-quarter earnings surprise of 27.3%, on average.
Alarm.com Holdings (ALRM - Free Report) has an Earnings ESP of +8.79% and a Zacks Rank #3. It is scheduled to post fourth-quarter numbers on Feb 22. ALRM delivered a trailing four-quarter earnings surprise of 35%, on average.
Nordson Corporation (NDSN - Free Report) has an Earnings ESP of +3.25% and a Zacks Rank #3. It is set to report fourth-quarter figures on Feb 21. NDSN delivered a trailing four-quarter earnings surprise of 2.6%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.