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Ingersoll Rand (IR) Q1 Earnings Top Estimates, Revenues Miss
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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.
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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.