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With a market cap of $37 billion, Ingersoll Rand Inc. (IR) is a global industrial leader specializing in mission-critical flow creation technologies, operating through its Industrial Technologies and Services, and Precision and Science Technologies segments. With a portfolio of renowned brands like Ingersoll Rand, Gardner Denver, ARO, and Dosatron, the company provides advanced solutions for industries including manufacturing, life sciences, energy, and agriculture. IR is set to unveil its fiscal Q4 earnings results after the market closes on Thursday, Feb. 13.
Ahead of this event, analysts expect the flow control and compression equipment maker to report a profit of $0.81 per share, down 2.4% from $0.83 per share in the year-ago quarter. However, the company has surpassed Wall Street's bottom-line estimates in the past four quarters. IR exceeded the consensus EPS estimate by a 2.5% margin in the most recent quarter.
For fiscal 2024, analysts expect the Davidson, North Carolina-based company to report EPS of $3.20, up 12.3% from $2.85 in fiscal 2023.
IR has underperformed the broader markets over the past 52 weeks, with shares up 18.6%, compared to the S&P 500 Index's ($SPX) 26.5% gain and the Industrial Select Sector SPDR Fund's (XLI) nearly 25% return over the same period.
Despite reporting better-than-expected Q3 adjusted EPS of $0.84, Ingersoll Rand shares fell 1.3% on Oct. 31 due to a lower-than-expected quarterly revenue of $1.9 billion. Additionally, the company's reduced full-year revenue growth forecast, down from 6% - 8% to 5% - 7%. Persistent inflation-driven material costs and ongoing supply chain challenges have continued to impact Ingersoll Rand’s overall profitability and growth prospects. While adjusted EBITDA rose 15.4% year-over-year to $532.7 million with margins improving to 28.6%, the revenue miss, weaker organic growth, and downgraded guidance overshadowed the earnings beat.
Analysts' consensus rating on IR stock is cautiously optimistic, with a "Moderate Buy" rating overall. Out of 14 analysts covering the stock, opinions include seven "Strong Buys” and seven "Holds.” As of writing, IR is trading below the average analyst price target of $108.77.
