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What's in the Offing for Ingersoll Rand's (IR) Q1 Earnings?

Ingersoll Rand Inc. IR is scheduled to release first-quarter 2023 results on May 3, after the market close.

The Zacks Consensus Estimate for the company’s first-quarter earnings has been revised upward by a penny in the past 60 days. Also, the company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 8.5%.

Let’s see how Ingersoll Rand has shaped up this earnings season.

Factors to Note

Ingersoll Rand’s solid product portfolio, innovation capabilities and focus on boosting aftermarket businesses are likely to have driven its performance in the first quarter of 2023. Solid demand and higher orders are likely to have boosted revenues in the Industrial Technologies & Services segment. The Zacks Consensus Estimate for the Industrial Technologies & Services segment’s revenues in the first quarter indicates a 12% rise from the year-ago reported number. For the first quarter, we expect the segment’s revenues to increase 10.4% year over year.

For the Precision & Science Technologies segment, pricing actions and acquired assets are likely to have been beneficial in the first quarter. The consensus mark for first-quarter Precision & Science Technologies segment’s revenues suggests a 5.7% increase from the year-ago reported number. For the quarter, we expect the Precision & Science Technologies segment’s revenues to climb 8.4% year over year.

The acquisition of SPX FLOW’s Air Treatment business, which has boosted IR’s  core compressor product offering, is likely to have benefited the company’s bottom line in the to-be-reported quarter. The Zacks Consensus Estimate for IR’s revenues in the first quarter suggests a 10.7% increase from the year-ago quarter’s reported number. We expect revenues to increase 9.9% from the year-ago period’s reported figure.

However, increasing costs of sales, rising selling and administrative expenses and supply-chain disruptions are likely to have dented IR’s margins and profitability in the to-be-reported quarter. Given its substantial international presence, foreign-currency headwinds are expected to have affected its top line.

Ingersoll Rand Inc. Price and EPS Surprise

 

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

 

Earnings Whispers

Our proven model suggests an earnings beat for IR 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. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Earnings ESP: IR has an Earnings ESP of +2.32% as the Most Accurate Estimate is pegged at 53 cents, higher than the Zacks Consensus Estimate of 52 cents.

Zacks Rank: IR presently sports a Zacks Rank of 1.

Highlights of Q4 Earnings

Ingersoll Rand reported fourth-quarter 2022 adjusted earnings (excluding 18 cents from non-recurring items) of 72 cents per share, which beat the Zacks Consensus Estimate of 63 cents. The bottom line increased year over year. Total revenues of $1,623.7 million outperformed the Zacks Consensus Estimate of $1,534.8 million. The top line increased 14.4% year over year on a 19.2% rise in organic revenues.

Other Stocks to Consider

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

A. O. Smith Corporation AOS has an Earnings ESP of +10.19% and a Zacks Rank of 3.  You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is scheduled to release first-quarter 2023 results on Apr 27. AOS’ earnings have surpassed the Zacks Consensus Estimate in three of the preceding four quarters while matching in one, the average beat being 3.2%.

Illinois Tool Works ITW has an Earnings ESP of +1.05% and a Zacks Rank of 3. The company is slated to release first-quarter 2023 results on May 2.

Illinois Tool’s earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 0.9%.

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

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