Yahoo Finance Ingersoll Rand (IR) to Post Q1 Earnings: Is a Beat in Store?
Ingersoll Rand Inc. IR is scheduled to release first-quarter 2024 results on May 2, after market close.
The company has a stellar earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 15.9%. Its bottom line surpassed the Zacks Consensus Estimate by 13.2% in the last reported quarter.
Let’s see how things have shaped up for Ingersoll Rand this earnings season.
Key Factors and Estimates for Q1
Solid demand and higher orders within the Industrial Technologies & Services segment are expected to drive Ingersoll Rand’s quarterly results. Strong orders across its product portfolio of compressors, industrial vacuum and blowers are likely to have driven revenues for the segment.
The acquisition of Friulair (February 2024) increased the scale of IR’s air dryer business, thereby boosting its Industrial Technologies and Services segment. This is likely to get reflected in the to-be-reported quarter’s results.
Also, synergistic gains from the buyouts of Howden Roots (August 2023) and SPX FLOW’s Air Treatment business (January 2023) are expected to have boosted revenues in the quarter under discussion. We expect the Industrial Technologies & Services segment’s quarterly revenues to increase 3.8% from the year-ago quarter’s levels.
Stability in the industrial businesses along with pricing actions and contributions from acquisitions is likely to have driven the performance of the Precision & Science Technologies segment. However, weakness in the life sciences business due to continued softness in oxygen concentration and biopharma end markets as well as delays in large projects might have marred segmental performance in the quarter under review. We expect the segment’s revenues to rise 2.7% from the prior-year quarter’s levels.
Ingersoll Rand has been witnessing escalating costs and operating expenses, which are likely to weigh on its bottom line. It has been witnessing high costs associated with investments to support growth in areas like demand generation and IIoT. For the quarter under review, we expect the company’s cost of sales to rise 3% from the year-earlier level.
Given the company’s substantial international operations, foreign currency headwinds might have affected the top line.
Ingersoll Rand Inc. Price and EPS Surprise
Ingersoll Rand Inc. price-eps-surprise | Ingersoll Rand Inc. Quote
What the Zacks Model Unveils
Our proven model suggests an earnings beat for Ingersoll Rand this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as elaborated below.
Earnings ESP: Ingersoll Rand has an Earnings ESP of +1.82% as the Most Accurate Estimate is pegged at 70 cents, higher than the Zacks Consensus Estimate of 69 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Ingersoll Rand presently carries a Zacks Rank #2.
Other Stocks With Favorable Combination
Here are a few other companies that, according to our model, have the right combination to beat on earnings this reporting cycle.
Atmus Filtration Technologies Inc. ATMU has an Earnings ESP of +0.57% and sports a Zacks Rank #1. It is slated to release first-quarter results on May 3. ATMU delivered a trailing four-quarter earnings surprise of 20.3%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
Axon Enterprise AXON has an Earnings ESP of +5.97% and a Zacks Rank #2. It is slated to release first-quarter 2024 results on May 6. AXON delivered a trailing four-quarter earnings surprise of 58.7%, on average.
Parker-Hannifin Corporation PH has an Earnings ESP of +1.35% and a Zacks Rank #3. It is slated to release third-quarter fiscal 2024 results on May 2. PH delivered a trailing four-quarter earnings surprise of 14.4%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Parker-Hannifin Corporation (PH) : Free Stock Analysis Report
Ingersoll Rand Inc. (IR) : Free Stock Analysis Report
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Atmus Filtration Technologies Inc. (ATMU) : Free Stock Analysis Report
