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Ingersoll Rand's Q3 Earnings Surpass Estimates, Revenues Miss
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Ingersoll Rand Inc. (IR - Free Report) reported third-quarter 2024 adjusted earnings of 84 cents per share, which surpassed the Zacks Consensus Estimate of 82 cents. The bottom line increased 9.1% year over year.
Total revenues of $1.86 billion missed the consensus estimate of $1.88 billion. However, the top line increased 7% year over year. Acquisitions contributed 8.9% to revenues, while organic revenues decreased 2.5%. Foreign currency movements had a positive impact of 0.5%.
Orders totaled $1.8 billion, up 9.8% year over year. Organically, orders increased 0.8%.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Segmental Discussion
The Industrial Technologies & Services segment generated revenues of $1.47 billion, accounting for 78.8% of net revenues. Sales increased 2.7% year over year. Acquisitions contributed 4.5%, while movement in foreign currencies had a positive impact of 0.4%. The segment’s organic sales inched down 2.2%. Our estimate for the segment’s sales was $1.5 billion.
Segmental orders were up 5.5%. Adjusted EBITDA increased 9.5% year over year to $449.9 million. Our estimate for adjusted EBITDA was $450.5 million.
The Precision & Science Technologies segment’s revenues totaled $393.8 million, representing 21.2% of net revenues. Our estimate for segmental revenues was $363.8 million. On a year-over-year basis, the segment’s revenues increased 26.8%. Organic sales declined 3.2%, while movement in foreign currencies had a positive impact of 0.9%. Acquisitions contributed 29.1% to revenue growth.
The segment’s orders increased 30% on a year-over-year basis. Adjusted EBITDA increased 25.4% year over year to $118.1 million. Our estimate for adjusted EBITDA was $102.0 million.
Ingersoll Rand Inc. Price, Consensus and EPS Surprise
IR's cost of sales increased 4.6% year over year to $1.0 billion. Selling and administrative expenses were up 6.1% to $334.3 million.
Adjusted EBITDA increased 15.4% year over year to $532.7 million. The margin increased to 28.6% from 26.5% in the year-ago period.
Balance Sheet & Cash Flow of IR
While exiting the third quarter, Ingersoll Rand had cash and cash equivalents of $1.4 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 nine months of 2024, the company paid out dividends of $24.2 million and repurchased treasury stocks worth $198.2 million.
IR generated net cash of $870.5 million from operating activities, up 9.4% year over year. Capital expenditure totaled $113.8 million compared with $75.8 million in the year-ago quarter. Free cash flow increased 5.1% to $756.7 million.
2024 Outlook Raised
Ingersoll Rand now expects revenues to increase 5-7% year over year in 2024 compared with 6-8% growth predicted earlier. Organic revenues are estimated to be flat to decrease 2%. For both the Industrial Technologies & Services and Precision & Science Technologies segments, organic revenues are predicted to be flat to decrease 2% from the year-ago levels. Foreign currency movements are expected to be flat.
Adjusted EBITDA is expected to be in the $2.01-$2.04 billion band, indicating an increase of 12-14% from the prior-year level. Adjusted earnings are anticipated to be in the range of $3.28-$3.34 per share compared with the earlier expected band of $3.27-$3.37, indicating an increase of 11-13% from the year-earlier actual. The Zacks Consensus Estimate for adjusted earnings is pegged at $3.33 per share.
Avery Dennison Corporation (AVY - Free Report) delivered third-quarter adjusted earnings of $2.33 per share, which beat the Zacks Consensus Estimate of $2.32. The bottom line increased 9% year over year, driven by higher volume and productivity gains.
Total revenues grew 4.1% year over year to $2.18 billion and missed the Zacks Consensus Estimate of $2.2 billion.
John Bean Technologies Corporation (JBT - Free Report) reported adjusted earnings of $1.50 per share in third-quarter 2024, 35.1% higher than the prior-year quarter. The figure beat the consensus estimate of $1.41.
Revenues of $454 million increased 12.4% from the year-ago quarter. The top line surpassed the consensus estimate of $445 million.
A. O. Smith Corporation’s (AOS - Free Report) third-quarter adjusted earnings of 82 cents per share matched the Zacks Consensus Estimate. The bottom line decreased 8.9% on a year-over-year basis.
Net sales of $902.6 million missed the consensus estimate of $913 million. The top line decreased 4% year over year due to lower sales in China and decreased volumes of water heaters in North America.
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Ingersoll Rand's Q3 Earnings Surpass Estimates, Revenues Miss
Ingersoll Rand Inc. (IR - Free Report) reported third-quarter 2024 adjusted earnings of 84 cents per share, which surpassed the Zacks Consensus Estimate of 82 cents. The bottom line increased 9.1% year over year.
Total revenues of $1.86 billion missed the consensus estimate of $1.88 billion. However, the top line increased 7% year over year. Acquisitions contributed 8.9% to revenues, while organic revenues decreased 2.5%. Foreign currency movements had a positive impact of 0.5%.
Orders totaled $1.8 billion, up 9.8% year over year. Organically, orders increased 0.8%.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Segmental Discussion
The Industrial Technologies & Services segment generated revenues of $1.47 billion, accounting for 78.8% of net revenues. Sales increased 2.7% year over year. Acquisitions contributed 4.5%, while movement in foreign currencies had a positive impact of 0.4%. The segment’s organic sales inched down 2.2%. Our estimate for the segment’s sales was $1.5 billion.
Segmental orders were up 5.5%. Adjusted EBITDA increased 9.5% year over year to $449.9 million. Our estimate for adjusted EBITDA was $450.5 million.
The Precision & Science Technologies segment’s revenues totaled $393.8 million, representing 21.2% of net revenues. Our estimate for segmental revenues was $363.8 million. On a year-over-year basis, the segment’s revenues increased 26.8%. Organic sales declined 3.2%, while movement in foreign currencies had a positive impact of 0.9%. Acquisitions contributed 29.1% to revenue growth.
The segment’s orders increased 30% on a year-over-year basis. Adjusted EBITDA increased 25.4% year over year to $118.1 million. Our estimate for adjusted EBITDA was $102.0 million.
Ingersoll Rand Inc. Price, Consensus and EPS Surprise
Ingersoll Rand Inc. price-consensus-eps-surprise-chart | Ingersoll Rand Inc. Quote
IR’s Margin Profile
IR's cost of sales increased 4.6% year over year to $1.0 billion. Selling and administrative expenses were up 6.1% to $334.3 million.
Adjusted EBITDA increased 15.4% year over year to $532.7 million. The margin increased to 28.6% from 26.5% in the year-ago period.
Balance Sheet & Cash Flow of IR
While exiting the third quarter, Ingersoll Rand had cash and cash equivalents of $1.4 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 nine months of 2024, the company paid out dividends of $24.2 million and repurchased treasury stocks worth $198.2 million.
IR generated net cash of $870.5 million from operating activities, up 9.4% year over year. Capital expenditure totaled $113.8 million compared with $75.8 million in the year-ago quarter. Free cash flow increased 5.1% to $756.7 million.
2024 Outlook Raised
Ingersoll Rand now expects revenues to increase 5-7% year over year in 2024 compared with 6-8% growth predicted earlier. Organic revenues are estimated to be flat to decrease 2%. For both the Industrial Technologies & Services and Precision & Science Technologies segments, organic revenues are predicted to be flat to decrease 2% from the year-ago levels. Foreign currency movements are expected to be flat.
Adjusted EBITDA is expected to be in the $2.01-$2.04 billion band, indicating an increase of 12-14% from the prior-year level. Adjusted earnings are anticipated to be in the range of $3.28-$3.34 per share compared with the earlier expected band of $3.27-$3.37, indicating an increase of 11-13% from the year-earlier actual. The Zacks Consensus Estimate for adjusted earnings is pegged at $3.33 per share.
IR’s Zacks Rank
The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Industrial Companies
Avery Dennison Corporation (AVY - Free Report) delivered third-quarter adjusted earnings of $2.33 per share, which beat the Zacks Consensus Estimate of $2.32. The bottom line increased 9% year over year, driven by higher volume and productivity gains.
Total revenues grew 4.1% year over year to $2.18 billion and missed the Zacks Consensus Estimate of $2.2 billion.
John Bean Technologies Corporation (JBT - Free Report) reported adjusted earnings of $1.50 per share in third-quarter 2024, 35.1% higher than the prior-year quarter. The figure beat the consensus estimate of $1.41.
Revenues of $454 million increased 12.4% from the year-ago quarter. The top line surpassed the consensus estimate of $445 million.
A. O. Smith Corporation’s (AOS - Free Report) third-quarter adjusted earnings of 82 cents per share matched the Zacks Consensus Estimate. The bottom line decreased 8.9% on a year-over-year basis.
Net sales of $902.6 million missed the consensus estimate of $913 million. The top line decreased 4% year over year due to lower sales in China and decreased volumes of water heaters in North America.