We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Ingersoll Rand (IR) Q1 Earnings Top Estimates, Revenues Miss
Read MoreHide Full Article
Ingersoll Rand Inc. (IR - Free Report) reported first-quarter 2024 adjusted earnings of 78 cents per share, surpassing the Zacks Consensus Estimate of 69 cents. The bottom line increased 20% year over year.
Total revenues of $1.67 billion lagged the consensus estimate of $1.70 billion. However, the top line increased 2.5% year over year. Acquisitions contributed 3.4% to revenues, while organic revenues declined 0.8% and foreign currency movements had a negative impact of 0.1%.
Orders totaled $1.71 billion, down 4% year over year. Organically, orders decreased 7%.
Segmental Discussion
The Industrial Technologies & Services segment generated revenues of $1.37 billion, accounting for 82% of net revenues. Sales increased 4.3% year over year. Acquisitions contributed 4.2% while movement in foreign currencies had a negative impact of 0.1%. The segment’s organic sales in the quarter inched up 0.2%. Our estimate for the segment’s sales was $1.4 billion.
Segmental orders in the quarter were down 3.6%. Adjusted EBITDA increased 19% year over year to $411.1 million. Our estimate for adjusted EBITDA was $366.7 million.
The Precision & Science Technologies segment’s revenues totaled $297 million, representing 18% of net revenues. Our estimate for segmental revenues was $320.5 million. On a year-over-year basis, the segment’s revenues declined 4.9%. Organic sales declined 5% while movement in foreign currencies had a positive impact of 0.1%.
The segment’s orders declined 5.4% on a year-over-year basis. Adjusted EBITDA decreased 3.2% year over year to $91.4 million. Our estimate for adjusted EBITDA was $92.1 million.
Ingersoll Rand Inc. Price, Consensus and EPS Surprise
IR's cost of sales decreased 4.3% year over year to $923.8 million. Selling and administrative expenses increased 8.1% to $336.3 million.
Adjusted EBITDA increased 14.6% year over year to $458.5 million. The margin increased to 27.5% from 24.6% in the year-ago period.
Balance Sheet & Cash Flow
While exiting the first quarter of 2024, Ingersoll Rand, currently carrying a Zacks Rank #2 (Buy), had cash and cash equivalents of $1.5 billion compared with $1.6 billion at the end of December 2023. Long-term debt (less of current maturities) was $2,687 million compared with $2,693 million in December 2023. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the first three months of 2024, the company paid out dividends of $8.1 million and repurchased treasury stocks worth $72.9 million.
IR generated net cash of $161.6 million from operating activities, up 5.1% year over year. Capital expenditure totaled $62.3 million compared with $22.4 million in the year-ago quarter. Free cash flow increased 32.9% to $99.3 million.
2024 Outlook
Ingersoll Rand expects revenues to increase 4-6% in 2024. Organic revenues are estimated to increase 2-4%. For the Industrial Technologies & Services and Precision & Science Technologies segments, organic revenues are predicted to increase 2-4% from the year-ago levels. Foreign currency movements are expected to be flat.
Adjusted EBITDA is expected in the $1.9-$2 billion band, indicating an increase of 9-12% from the prior-year levels. Adjusted earnings are anticipated in the range of $3.20-$3.30 per share, indicating an increase of 8-11% from the year-earlier actuals.
Performance of Other Industrial Companies
IDEX Corporation’s (IEX - Free Report) second-quarter 2024 adjusted earnings of $1.88 per share surpassed the Zacks Consensus Estimate of $1.75. On a year-over-year basis, the bottom line decreased approximately 10.1%.
IDEX’s net sales of $800.5 million underperformed the consensus estimate of $805 million. The top line also decreased 5.3% year over year.
A. O. Smith Corporation’s (AOS - Free Report) second-quarter 2024 adjusted earnings of $1.00 per share surpassed the Zacks Consensus Estimate of 99 cents. The bottom line increased 6% on a year-over-year basis.
Net sales of $978.8 million missed the consensus estimate of $995 million. However, the top line inched up 1% year over year, driven by strong demand for commercial water heaters in North America.
W.W. Grainger, Inc. (GWW - Free Report) has reported earnings per share of $9.62 in second-quarter 2024, beating the Zacks Consensus Estimate of $9.58. The bottom line improved 0.1% year over year.
Grainger’s quarterly revenues rose 3.5% year over year to $4.24 billion. The top line missed the consensus estimate of $4.27 billion.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Ingersoll Rand (IR) Q1 Earnings Top Estimates, Revenues Miss
Ingersoll Rand Inc. (IR - Free Report) reported first-quarter 2024 adjusted earnings of 78 cents per share, surpassing the Zacks Consensus Estimate of 69 cents. The bottom line increased 20% year over year.
Total revenues of $1.67 billion lagged the consensus estimate of $1.70 billion. However, the top line increased 2.5% year over year. Acquisitions contributed 3.4% to revenues, while organic revenues declined 0.8% and foreign currency movements had a negative impact of 0.1%.
Orders totaled $1.71 billion, down 4% year over year. Organically, orders decreased 7%.
Segmental Discussion
The Industrial Technologies & Services segment generated revenues of $1.37 billion, accounting for 82% of net revenues. Sales increased 4.3% year over year. Acquisitions contributed 4.2% while movement in foreign currencies had a negative impact of 0.1%. The segment’s organic sales in the quarter inched up 0.2%. Our estimate for the segment’s sales was $1.4 billion.
Segmental orders in the quarter were down 3.6%. Adjusted EBITDA increased 19% year over year to $411.1 million. Our estimate for adjusted EBITDA was $366.7 million.
The Precision & Science Technologies segment’s revenues totaled $297 million, representing 18% of net revenues. Our estimate for segmental revenues was $320.5 million. On a year-over-year basis, the segment’s revenues declined 4.9%. Organic sales declined 5% while movement in foreign currencies had a positive impact of 0.1%.
The segment’s orders declined 5.4% on a year-over-year basis. Adjusted EBITDA decreased 3.2% year over year to $91.4 million. Our estimate for adjusted EBITDA was $92.1 million.
Ingersoll Rand Inc. Price, Consensus and EPS Surprise
Ingersoll Rand Inc. price-consensus-eps-surprise-chart | Ingersoll Rand Inc. Quote
Margin Profile
IR's cost of sales decreased 4.3% year over year to $923.8 million. Selling and administrative expenses increased 8.1% to $336.3 million.
Adjusted EBITDA increased 14.6% year over year to $458.5 million. The margin increased to 27.5% from 24.6% in the year-ago period.
Balance Sheet & Cash Flow
While exiting the first quarter of 2024, Ingersoll Rand, currently carrying a Zacks Rank #2 (Buy), had cash and cash equivalents of $1.5 billion compared with $1.6 billion at the end of December 2023. Long-term debt (less of current maturities) was $2,687 million compared with $2,693 million in December 2023. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the first three months of 2024, the company paid out dividends of $8.1 million and repurchased treasury stocks worth $72.9 million.
IR generated net cash of $161.6 million from operating activities, up 5.1% year over year. Capital expenditure totaled $62.3 million compared with $22.4 million in the year-ago quarter. Free cash flow increased 32.9% to $99.3 million.
2024 Outlook
Ingersoll Rand expects revenues to increase 4-6% in 2024. Organic revenues are estimated to increase 2-4%. For the Industrial Technologies & Services and Precision & Science Technologies segments, organic revenues are predicted to increase 2-4% from the year-ago levels. Foreign currency movements are expected to be flat.
Adjusted EBITDA is expected in the $1.9-$2 billion band, indicating an increase of 9-12% from the prior-year levels. Adjusted earnings are anticipated in the range of $3.20-$3.30 per share, indicating an increase of 8-11% from the year-earlier actuals.
Performance of Other Industrial Companies
IDEX Corporation’s (IEX - Free Report) second-quarter 2024 adjusted earnings of $1.88 per share surpassed the Zacks Consensus Estimate of $1.75. On a year-over-year basis, the bottom line decreased approximately 10.1%.
IDEX’s net sales of $800.5 million underperformed the consensus estimate of $805 million. The top line also decreased 5.3% year over year.
A. O. Smith Corporation’s (AOS - Free Report) second-quarter 2024 adjusted earnings of $1.00 per share surpassed the Zacks Consensus Estimate of 99 cents. The bottom line increased 6% on a year-over-year basis.
Net sales of $978.8 million missed the consensus estimate of $995 million. However, the top line inched up 1% year over year, driven by strong demand for commercial water heaters in North America.
W.W. Grainger, Inc. (GWW - Free Report) has reported earnings per share of $9.62 in second-quarter 2024, beating the Zacks Consensus Estimate of $9.58. The bottom line improved 0.1% year over year.
Grainger’s quarterly revenues rose 3.5% year over year to $4.24 billion. The top line missed the consensus estimate of $4.27 billion.