Ingersoll Rand Inc. IR is scheduled to release fourth-quarter 2024 results on Feb. 13, before market open.

The Zacks Consensus Estimate for Ingersoll Rand’s fourth-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 9.1%.

The consensus estimate for revenues is pegged at $1.9 billion, indicating growth of 4.9% from the prior-year quarter’s figure. The consensus estimate for adjusted earnings is pinned at 84 cents per share, indicating 2.3% decline 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 fourth-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 3.6% year over year to $1.56 billion.

The Precision and Science Technologies segment is anticipated to have performed well, backed by growth in short-cycle orders and strong book-and-ship orders. We expect the segment’s revenues to increase 10.5% year over year to $345.3 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 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 fourth quarter, we expect the company’s total revenues to be $1.91 billion, indicating an increase of 4.8% year over year.

However, increasing costs of sales are likely to have weighed on IR’s performance. Rising selling and administrative expenses are likely to have dented the company’s margins and profitability.

Given the company’s substantial international presence, foreign-currency headwinds are expected to have affected its top line.

Ingersol Rand’s adjusted earnings are expected to be 83 cents per share, indicating a 3% decrease from the year-ago quarter’s number.

Earnings Whispers

Our proven model does not conclusively predict 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 not the case here, as elaborated below.

Earnings ESP: IR has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 84 cents. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: IR presently carries a Zacks Rank #4 (Sell).

Stocks to Consider

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

Deere & Company DE has an Earnings ESP of +1.12% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is slated to release first-quarter fiscal 2025 (ended January 2025) results on Feb. 13. DE’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 13.5%.

Flowserve Corporation FLS has an Earnings ESP of +2.60% and a Zacks Rank of 3 at present. The company is scheduled to release fourth-quarter 2024 results on Feb. 18.

Flowserve’s earnings surpassed the Zacks Consensus Estimate in three of the preceding four quarters and missed the mark in one, the average surprise being 10.8%.

Lincoln Electric Holdings, Inc. LECO has an Earnings ESP of +1.17% and a Zacks Rank of 3 at present. The company is slated to release fourth-quarter 2024 results on Feb. 13.

Lincoln Electric’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 5.4%.

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Lincoln Electric Holdings, Inc. (LECO) : Free Stock Analysis Report

Ingersoll Rand Inc. (IR) : Free Stock Analysis Report

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