Ingersoll Rand (IR) Q3 Earnings Report Preview: What To Look For

Industrial manufacturing company Ingersoll Rand (NYSE:IR) will be reporting earnings tomorrow after market hours. Here’s what investors should know.

Ingersoll Rand met analysts’ revenue expectations last quarter, reporting revenues of $1.81 billion, up 7% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ operating margin estimates but a miss of analysts’ organic revenue estimates.

Is Ingersoll Rand a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Ingersoll Rand’s revenue to grow 7.8% year on year to $1.87 billion, slowing from the 14.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.81 per share.

Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 7 downward revisions over the last 30 days (we track 11 analysts). Ingersoll Rand has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 3.8% on average.

Looking at Ingersoll Rand’s peers in the gas and liquid handling segment, some have already reported their Q3 results, giving us a hint as to what we can expect. ITT delivered year-on-year revenue growth of 7.7%, meeting analysts’ expectations, and Flowserve reported revenues up 3.5%, in line with consensus estimates. Flowserve traded up 2.4% following the results.

Read our full analysis of ITT’s results here and Flowserve’s results here.

Investors in the gas and liquid handling segment have had steady hands going into earnings, with share prices flat over the last month. Ingersoll Rand’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $103.34 (compared to the current share price of $97.26).

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