Ingersoll Rand Inc. IR is scheduled to release third-quarter 2024 results on Oct. 31, before market open.

The Zacks Consensus Estimate for Ingersoll Rand’s third-quarter earnings has remained steady in the past 60 days. The company has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, the average surprise being 11%.

The consensus estimate for revenues is pegged at $1.9 billion, indicating growth of 7.9% from the prior-year quarter’s figure. The consensus estimate for adjusted earnings is pinned at 82 cents per share, indicating 6.5% growth from the year-ago quarter’s number.

Let’s see how things have shaped up for IR this earnings season.

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Factors to Note Ahead of IR’s Results

IR’s Industrial Technologies & Services segment’s third-quarter performance is expected to have benefited from higher orders across its product portfolio of industrial vacuums and blowers, along with stable orders for compressors. We anticipate the segment’s revenues to increase 4.2% year over year to $1.5 billion.

The Precision and Science Technologies segment is anticipated to have performed well, backed by growth in short-cycle orders along with strong book-and-ship orders. We anticipate the segment’s revenues to increase 17.2% year over year to $363.8 million.

Ingersoll Rand has been making continued investments to support growth in demand generation and the Industrial Internet of Things, which are expected to have driven its performance.

Synergistic gains from the acquisitions made by the company are expected to have boosted revenues. In June 2024, Ingersoll Rand acquired ILC Dover, integrating it into its Precision & Science Technologies segment. This acquisition enhanced the company’s capabilities, with ILC Dover’s single-use solutions for biopharma and pharma production complementing its expertise in liquid handling technologies and positive displacement pumps.

In the same month, IR acquired Complete Air and Power Solutions (“CAPS”), Del PD Pumps & Gear Pvt Ltd. (Del Pumps) and Fruvac Ltd. (Fruitland Manufacturing). The acquisition of Del Pumps complemented IR’s expertise in mission-critical, pumping solutions across life science, food and beverage and medical industries. The buyout augmented the precision technologies business within the company’s Precision and Science Technologies segment.

The CAPS buyout expanded IR’s product portfolio for its clients and the acquisition of Fruitland augmented its capabilities in the mobile vacuum market. Ingersoll Rand integrated both companies into its Industrial Technologies and Services segment.

In the third quarter, we expect the company’s total revenues to be $1.9 billion, indicating an increase of 6.5% year over year. Adjusted earnings are expected to be 81 cents per share, indicating a 5.7% increase from the year-ago quarter’s number.

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

Earnings Whispers

Our proven model predicts a likely 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. 

Earnings ESP: Ingersoll Rand has an Earnings ESP of +1.22% as the Most Accurate Estimate is pegged at 83 cents per share, higher than the Zacks Consensus Estimate of 82 cents. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: Ingersoll Rand currently carries a Zacks Rank of 2.

Other Stocks to Consider

Here are some companies, which, according to our model, also have the right combination of elements to beat on earnings in this reporting cycle.

Parker-Hannifin Corporation PH has an Earnings ESP of +0.83% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is scheduled to release first-quarter fiscal 2025 (ended September 2024) results on Oct. 31. Parker-Hannifin’s earnings have surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 11.2%.

Xylem Inc. XYL has an Earnings ESP of +0.10% and a Zacks Rank of 3 at present. The company is slated to release third-quarter results on Oct. 31.

Xylem’s earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 6.1%.

Emerson Electric Co. EMR has an Earnings ESP of +0.09% and a Zacks Rank of 3 at present. The company is slated to release fiscal fourth-quarter (ended September 2024) results on Nov. 5.

Emerson’s earnings have surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the mark in one, the average surprise being 6.3%.

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Xylem Inc. (XYL) : Free Stock Analysis Report

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