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Ingersoll (IR) Q3 Earnings Beat Estimates, '18 EPS View Up
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Ingersoll-Rand plc (IR - Free Report) reported better-than-expected results for third-quarter 2018.
Earnings/ Revenues
Quarterly adjusted earnings came in at $1.75 per share, up 22% year over year. The bottom line also outpaced the Zacks Consensus Estimate of $1.72.
Revenues in the third quarter came in at $4,031 million, up 10% year over year. The top line also exceeded the Zacks Consensus Estimate of $4,020 million. Revenues grew 10% year over year organically.
Bookings in the quarter were $4,050 million, up 11% year over year.
Segmental Break-Up
Revenues in the Climate segment came in at $3,239 million, up 10% year over year. The top-line performance of the Industrial segment improved 8%, year over year, to $792 million.
Ingersoll-Rand PLC (Ireland) Price, Consensus and EPS Surprise
Cost of goods sold in the reported quarter came in at $2,718.3 million, up 9.2% year over year. Selling and administrative expenses during the quarter were $725.6 million, up 7.6% from the year-ago tally.
Quarterly adjusted operating margin expanded 100 basis points to 15.1%. This upside was stemmed by stellar revenues, pricing actions and improved productivity.
Balance Sheet/Cash Flow
Exiting the Sep-end quarter, Ingersoll had cash and cash equivalents of $1,022.5 million, down from $1,549.4 million as of Dec 31, 2017. Long-term debt came in at $3,739.8 million, up from $2,957 million recorded at the end of 2017.
In the first nine months of 2018, the company generated $897.4 million cash from operating activities, higher than $873.2 million cash secured in the year-ago period. Capital expenditure was $251.2 million, up from $149.9 million recorded in the prior-year period.
On a year-to-date basis, Ingersoll returned more than $850 million to its shareowners, through dividend payments ($351 million) and share-buyback offers ($514 million). In addition, in October, the company rolled out a share-repurchase program worth more than $1.5 billion.
Outlook
Ingersoll is poised to grow on the back of continued growth in bookings and revenues as well as its unique capital-allocation strategy. This Zacks Rank #2 (Buy) company has lifted its earnings view for 2018 from $5.00-$5.50 per share to the $5.55-$5.60 per share range.
Ingersoll currently anticipates to secure earnings of $5.00-$5.50 per share in 2018, as against the previous view of $5.00-$5.20 per share. Organic top-line growth for the full year is projected at 7-8%, higher than the previous guidance of 3-3.5%.
Altra Industrial Motion Corp. sports a Zacks Rank #1 (Strong Buy). The company pulled off an average positive earnings surprise of 4.01% in the past four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.
Atkore International Group Inc. (ATKR - Free Report) carries a Zacks Rank of 1. The company generated an average positive earnings surprise of 24.46% in the trailing four quarters.
Donaldson Company, Inc. (DCI - Free Report) also sports a Zacks Rank of 1. The company came up with an average positive earnings surprise of 2.29% in the preceding four quarters.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Ingersoll (IR) Q3 Earnings Beat Estimates, '18 EPS View Up
Ingersoll-Rand plc (IR - Free Report) reported better-than-expected results for third-quarter 2018.
Earnings/ Revenues
Quarterly adjusted earnings came in at $1.75 per share, up 22% year over year. The bottom line also outpaced the Zacks Consensus Estimate of $1.72.
Revenues in the third quarter came in at $4,031 million, up 10% year over year. The top line also exceeded the Zacks Consensus Estimate of $4,020 million. Revenues grew 10% year over year organically.
Bookings in the quarter were $4,050 million, up 11% year over year.
Segmental Break-Up
Revenues in the Climate segment came in at $3,239 million, up 10% year over year. The top-line performance of the Industrial segment improved 8%, year over year, to $792 million.
Ingersoll-Rand PLC (Ireland) Price, Consensus and EPS Surprise
Ingersoll-Rand PLC (Ireland) Price, Consensus and EPS Surprise | Ingersoll-Rand PLC (Ireland) Quote
Costs/Margins
Cost of goods sold in the reported quarter came in at $2,718.3 million, up 9.2% year over year. Selling and administrative expenses during the quarter were $725.6 million, up 7.6% from the year-ago tally.
Quarterly adjusted operating margin expanded 100 basis points to 15.1%. This upside was stemmed by stellar revenues, pricing actions and improved productivity.
Balance Sheet/Cash Flow
Exiting the Sep-end quarter, Ingersoll had cash and cash equivalents of $1,022.5 million, down from $1,549.4 million as of Dec 31, 2017. Long-term debt came in at $3,739.8 million, up from $2,957 million recorded at the end of 2017.
In the first nine months of 2018, the company generated $897.4 million cash from operating activities, higher than $873.2 million cash secured in the year-ago period. Capital expenditure was $251.2 million, up from $149.9 million recorded in the prior-year period.
On a year-to-date basis, Ingersoll returned more than $850 million to its shareowners, through dividend payments ($351 million) and share-buyback offers ($514 million). In addition, in October, the company rolled out a share-repurchase program worth more than $1.5 billion.
Outlook
Ingersoll is poised to grow on the back of continued growth in bookings and revenues as well as its unique capital-allocation strategy. This Zacks Rank #2 (Buy) company has lifted its earnings view for 2018 from $5.00-$5.50 per share to the $5.55-$5.60 per share range.
Ingersoll currently anticipates to secure earnings of $5.00-$5.50 per share in 2018, as against the previous view of $5.00-$5.20 per share. Organic top-line growth for the full year is projected at 7-8%, higher than the previous guidance of 3-3.5%.
Other Stocks to Consider
Some other top-ranked stocks in the Zacks Industrial Products sector are listed below:
Altra Industrial Motion Corp. sports a Zacks Rank #1 (Strong Buy). The company pulled off an average positive earnings surprise of 4.01% in the past four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.
Atkore International Group Inc. (ATKR - Free Report) carries a Zacks Rank of 1. The company generated an average positive earnings surprise of 24.46% in the trailing four quarters.
Donaldson Company, Inc. (DCI - Free Report) also sports a Zacks Rank of 1. The company came up with an average positive earnings surprise of 2.29% in the preceding four quarters.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>