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) Q2 Earnings & Revenues Top Estimates
Read MoreHide Full Article
Ingersoll Rand Inc. (IR - Free Report) reported second-quarter 2024 adjusted earnings of 83 cents per share, which surpassed the Zacks Consensus Estimate of 74 cents. The bottom line increased 22.1% year over year.
Total revenues of $1.80 billion beat the consensus estimate of $1.78 billion. The top line increased 7% year over year. Acquisitions contributed 6.9% to revenues while organic revenues increased 1%. Foreign currency movements had a negative impact of 0.9%.
Orders totaled $1.8 billion, down 4% year over year. Organically, orders increased 3.6%.
Segmental Discussion
The Industrial Technologies & Services segment generated revenues of $1.5 billion, accounting for 81.2% of net revenues. Sales increased 6.4% year over year. Acquisitions contributed 5.9% while movement in foreign currencies had a negative impact of 0.9%. The segment’s organic sales inched up 1.4%. Our estimate for the segment’s sales was $1.4 billion.
Segmental orders were up 1.5%. Adjusted EBITDA increased 15.6% year over year to $436.2 million. Our estimate for adjusted EBITDA was $396.0 million.
The Precision & Science Technologies segment’s revenues totaled $338.8 million, representing 18.8% of net revenues. Our estimate for segmental revenues was $314.4 million. On a year-over-year basis, the segment’s revenues increased 10%. Organic sales declined 1.1% while movement in foreign currencies had a negative impact of 0.6%. Acquisitions contributed 11.7% to revenue growth.
The segment’s orders increased 14% on a year-over-year basis. Adjusted EBITDA increased 13.9% year over year to $102.5 million. Our estimate for adjusted EBITDA was $88.8 million.
Ingersoll Rand Inc. Price, Consensus and EPS Surprise
IR's cost of sales increased 2.3% year over year to $1.0 billion. Selling and administrative expenses increased 8.4% to $342.1 million.
Adjusted EBITDA increased 16.5% year over year to $494.6 million. The margin increased to 27.4% from 25.2% in the year-ago period.
Balance Sheet & Cash Flow
While exiting the second quarter, Ingersoll Rand had cash and cash equivalents of $1.1 billion compared with $1.6 billion at the end of December 2023. Long-term debt (less of current maturities) was $4.8 billion compared with $2.7 billion in December 2023.
In the first six months of 2024, the company paid out dividends of $16.1 million and repurchased treasury stocks worth $135.5 million.
IR generated net cash of $466.5 million from operating activities, up 17% year over year. Capital expenditure totaled $84.1 million compared with $47.2 million in the year-ago quarter. Free cash flow increased 8.8% to $382.4 million.
2024 Outlook Raised
Ingersoll Rand now expects revenues to increase 6-8% year over year in 2024 compared with 4-6% growth predicted earlier. Organic revenues are estimated to increase 0-2%. For both the Industrial Technologies & Services and Precision & Science Technologies segments, organic revenues are predicted to increase 0-2% from the year-ago levels. Foreign currency movements are expected to be approximately 1%.
Adjusted EBITDA is expected to be in the $2.01-$2.06 billion band, indicating an increase of 12-15% from the prior-year level. Adjusted earnings are anticipated to be in the range of $3.27-$3.37 per share compared with the earlier expected range of $3.20-$3.30, indicating an increase of 8-11% from the year-earlier actual. The Zacks Consensus Estimate for adjusted earnings is pegged at $3.29 per share.
Pentair plc (PNR - Free Report) reported second-quarter adjusted earnings per share of $1.22, which beat the Zacks Consensus Estimate of $1.15. The reported figure also improved 18% from the year-ago quarter.
Net sales rose 1.6% year over year to $1.1 billion. PNR’s top line outpaced the Zacks Consensus Estimate of $1.09 billion.
Crown Holdings, Inc. (CCK - Free Report) reported second-quarter adjusted earnings per share of $1.81, which beat the Zacks Consensus Estimate of $1.59. The bottom line improved 8% year over year.
Net sales totaled $3.04 billion, down 2.2% from the year-ago quarter. The top line missed the Zacks Consensus Estimate of $3.06 billion.
A. O. Smith Corporation’s (AOS - Free Report) second-quarter adjusted earnings of $1.06 per share missed the Zacks Consensus Estimate of $1.07. However, the bottom line increased 5% on a year-over-year basis.
Net sales of $1.02 billion surpassed the consensus estimate of $992 million. The top line increased 7% year over year, driven by strong demand for residential and commercial water heaters in North America.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Ingersoll Rand (IR) Q2 Earnings & Revenues Top Estimates
Ingersoll Rand Inc. (IR - Free Report) reported second-quarter 2024 adjusted earnings of 83 cents per share, which surpassed the Zacks Consensus Estimate of 74 cents. The bottom line increased 22.1% year over year.
Total revenues of $1.80 billion beat the consensus estimate of $1.78 billion. The top line increased 7% year over year. Acquisitions contributed 6.9% to revenues while organic revenues increased 1%. Foreign currency movements had a negative impact of 0.9%.
Orders totaled $1.8 billion, down 4% year over year. Organically, orders increased 3.6%.
Segmental Discussion
The Industrial Technologies & Services segment generated revenues of $1.5 billion, accounting for 81.2% of net revenues. Sales increased 6.4% year over year. Acquisitions contributed 5.9% while movement in foreign currencies had a negative impact of 0.9%. The segment’s organic sales inched up 1.4%. Our estimate for the segment’s sales was $1.4 billion.
Segmental orders were up 1.5%. Adjusted EBITDA increased 15.6% year over year to $436.2 million. Our estimate for adjusted EBITDA was $396.0 million.
The Precision & Science Technologies segment’s revenues totaled $338.8 million, representing 18.8% of net revenues. Our estimate for segmental revenues was $314.4 million. On a year-over-year basis, the segment’s revenues increased 10%. Organic sales declined 1.1% while movement in foreign currencies had a negative impact of 0.6%. Acquisitions contributed 11.7% to revenue growth.
The segment’s orders increased 14% on a year-over-year basis. Adjusted EBITDA increased 13.9% year over year to $102.5 million. Our estimate for adjusted EBITDA was $88.8 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 increased 2.3% year over year to $1.0 billion. Selling and administrative expenses increased 8.4% to $342.1 million.
Adjusted EBITDA increased 16.5% year over year to $494.6 million. The margin increased to 27.4% from 25.2% in the year-ago period.
Balance Sheet & Cash Flow
While exiting the second quarter, Ingersoll Rand had cash and cash equivalents of $1.1 billion compared with $1.6 billion at the end of December 2023. Long-term debt (less of current maturities) was $4.8 billion compared with $2.7 billion in December 2023.
In the first six months of 2024, the company paid out dividends of $16.1 million and repurchased treasury stocks worth $135.5 million.
IR generated net cash of $466.5 million from operating activities, up 17% year over year. Capital expenditure totaled $84.1 million compared with $47.2 million in the year-ago quarter. Free cash flow increased 8.8% to $382.4 million.
2024 Outlook Raised
Ingersoll Rand now expects revenues to increase 6-8% year over year in 2024 compared with 4-6% growth predicted earlier. Organic revenues are estimated to increase 0-2%. For both the Industrial Technologies & Services and Precision & Science Technologies segments, organic revenues are predicted to increase 0-2% from the year-ago levels. Foreign currency movements are expected to be approximately 1%.
Adjusted EBITDA is expected to be in the $2.01-$2.06 billion band, indicating an increase of 12-15% from the prior-year level. Adjusted earnings are anticipated to be in the range of $3.27-$3.37 per share compared with the earlier expected range of $3.20-$3.30, indicating an increase of 8-11% from the year-earlier actual. The Zacks Consensus Estimate for adjusted earnings is pegged at $3.29 per share.
Zacks Rank
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Industrial Companies
Pentair plc (PNR - Free Report) reported second-quarter adjusted earnings per share of $1.22, which beat the Zacks Consensus Estimate of $1.15. The reported figure also improved 18% from the year-ago quarter.
Net sales rose 1.6% year over year to $1.1 billion. PNR’s top line outpaced the Zacks Consensus Estimate of $1.09 billion.
Crown Holdings, Inc. (CCK - Free Report) reported second-quarter adjusted earnings per share of $1.81, which beat the Zacks Consensus Estimate of $1.59. The bottom line improved 8% year over year.
Net sales totaled $3.04 billion, down 2.2% from the year-ago quarter. The top line missed the Zacks Consensus Estimate of $3.06 billion.
A. O. Smith Corporation’s (AOS - Free Report) second-quarter adjusted earnings of $1.06 per share missed the Zacks Consensus Estimate of $1.07. However, the bottom line increased 5% on a year-over-year basis.
Net sales of $1.02 billion surpassed the consensus estimate of $992 million. The top line increased 7% year over year, driven by strong demand for residential and commercial water heaters in North America.