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Ingersoll Rand (IR) to Post Q2 Earnings: What's in the Cards?

·4 min read

Ingersoll Rand Inc. IR is scheduled to release second-quarter 2022 results on Aug 3, after market close.

The Zacks Consensus Estimate for IR’s second-quarter earnings has been revised 1.9% downward in the past 60 days. However, Ingersoll Rand has an impressive surprise history, with its earnings having outperformed the Zacks Consensus Estimate in each of the trailing four quarters, the average being 14.8%.

Let’s see how things are shaping up for IR this earnings season.

Factors to Note

Ingersoll Rand benefited from strength in its medical, YZ systems, Specialty and ARO businesses, and solid demand for its vacuum pumps, blowers and compressors in the second quarter. IR’s solid product portfolio, innovation capabilities and focus on boosting aftermarket businesses are likely to have augmented its top line in the to-be-reported quarter.

IR’s February 2022 acquisition of Houdstermaatschappij Jorc, which expanded its Industrial Technologies & Services segment’s product offerings, is expected to have contributed to top-line growth.

However, rising costs might have hurt Ingersoll Rand’s bottom line in the to-be-reported quarter. Inflationary pressures on logistics and direct material costs, ongoing growth investments and supply-chain disturbances might have stressed its margins in the second quarter. Unfavorable movements in foreign currencies are likely to have affected IR’s overseas business in second-quarter 2022.

The Zacks Consensus Estimate for Ingersoll Rand’s revenues is pegged at $1,390 million for the second quarter, suggesting an 8.7% increase from the year-ago quarter’s reported number. Earnings estimates are pegged at 49 cents, indicating an increase of 22.5% from the year-ago period’s reported figure.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Illinois Tool 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. But this is not the case here, as you will see below.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.  You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: Ingersoll Rand has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 51 cents.

Ingersoll Rand Inc. Price, Consensus and EPS Surprise

Ingersoll Rand Inc. Price, Consensus and EPS Surprise
Ingersoll Rand Inc. Price, Consensus and EPS Surprise

Ingersoll Rand Inc. price-consensus-eps-surprise-chart | Ingersoll Rand Inc. Quote

Zacks Rank: Ingersoll Rand currently carries a Zacks Rank #3.

Highlights of Q1 Earnings

Ingersoll Rand’s earnings surpassed estimates by 8.9%, while sales beat the same by 3.2%. IR’s adjusted quarterly earnings were 49 cents per share, reflecting growth of 25.6% from the year-ago quarter’s 39 cents. The bottom line surpassed the Zacks Consensus Estimate of 45 cents. Revenues of $1,337 million reflected growth of 18.4% from the year-ago quarter’s number.

Stocks to Consider

Here are some companies worth considering within the broader Industrial Products sector, as according to our model, these have the right combination of elements to beat on earnings this reporting cycle.

MRC Global Inc. MRC has an Earnings ESP of +30.27% and a Zacks Rank of 1. MRC is slated to release second-quarter 2022 financial numbers on Aug 8.

In the past 60 days, MRC’s earnings estimates have increased 13.6% for the second quarter of 2022. MRC Global’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average being 140.8%.

A. O. Smith Corporation AOS has an Earnings ESP of +0.62% and a Zacks Rank of 3. AOS is slated to release second-quarter 2022 financial numbers on Jul 28.

In the past 60 days, AOS’s earnings estimates have decreased 1.2% for the second quarter of 2022. A. O. Smith’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average being 12.6%.

Zebra Technologies ZBRA has an Earnings ESP of +2.15% and a Zacks Rank #2. ZBRA is scheduled to release second-quarter 2022 earnings numbers on Aug 2.

In the past 60 days, ZBRA’s earnings estimates have been unchanged for the second quarter of 2022. Zebra Technologies’ earnings trumped the Zacks Consensus Estimate in each of the trailing four quarters, the average being 8.8%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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