Ingersoll-Rand Q2 Profit Dips, But Adjusted EPS and Revenues Beat Estimates; Guides Q3 & 2013 In-Line (IR)
Climate control and security products manufacturer Ingersoll-Rand plc (IR) reported early on Friday that its second quarter profits declined 13% year-over-year despite a 3% rise in total revenues. Even though the company saw a drop in profits, adjusted earnings and revenues were able to beat Wall Street estimates.
The Dublin, Ireland-based company posted a second quarter net income of $317.2 million, or $1.05 per share, down 13% from $365.8 million,or $1.16 per share, earned in the second quarter of 2012. Ingersoll-Rand’s profit per share from continuing operations declined to $1.03 from $1.14.
The company’s second quarter adjusted net income from continuing operations was $1.14 per share. On average, analysts polled by Thompson Reuters were expecting the company to post an adjusted profit of $1.08 per share in the quarter.
Quarterly revenues rose 3% to $3.93 billion from $3.82 million last year. Analysts were expecting total second quarter revenues to be $3.88 billion.
Ingersoll-Rand said total U.S. revenues rose 4% year-over-year, while total international revenues rose 1%.
Looking ahead, the company said it expects third quarter revenues to be between $3.65 billion and $3.75 billion. IR also expects adjusted earnings per share from continuing to be in the range of $1.07 and $1.12, with reported profits per share coming in between 82 cents and 87 cents. According to analysts, Ingersoll-Rand is expected to earn $1.10 per share on revenues of $3.76 billion in the third quarter.
For the full-year 2013, the company expects adjusted earnings from continuing operations to come in between $3.50 and $3.60 per share on revenues between $14.2 billion and $14.4 billion. Reported earnings per share is expected to be between $2.75 and $2.95. Analysts are expecting IR to see earnings of $3.58 per share on revenues of $14.40 billion for 2013.
Ingersoll-Rand shares were inactive during pre-market trading on Friday. The stock is up 24.94% year-to-date.
The Bottom Line
Shares of Ingersoll-Rand (IR) have a dividend yield of 1.40% based on last night’s closing price of $59.92 and the company’s annualized dividend payout of 84 cents per share.
Ingersoll-Rand plc (IR) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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