Nomura Securities Maintains a 'Reduce' on Ingersoll-Rand (IR); 2Q Miss, 3Q Guide Below Consensus = Need Big 4Q

Nomura Securities maintains a 'Reduce' on Ingersoll-Rand (NYSE: IR), PT $45.
Nomura analyst, Shannon O'Callaghan, says, "The good: Industrial Technologies was strong with revenues 7% better than our estimate and margins of 15.6% beating our 13.8% estimate. Revenues in Security were 3% better than our estimate. Solid apparent bookings in Climate +12%, Industrial +17%, and Security +14% though these include FX which benefited overall company orders by 3%. Overall company order growth ex-FX was only 6%."

"The bad: 2Q margins, 3Q guidance, 4Q implied guidance. Quality of 2Q margins, which included $23M gain and likely pension/OPEB benefits, so ex-gain margins were up 120 bps and probably more like 50 bps ex-pension/OPEB tailwinds. Resi weakness. Lack of a call out of the $0.05 gain in the headline EPS."

For more ratings news on Ingersoll-Rand click here and for the rating history of Ingersoll-Rand click here.

Shares of Ingersoll-Rand closed at $44.77 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Nomura/Instinet Upgrades Genting Singapore (GENS:SP) (GIGNY) to Neutral
• Freedom Broker Upgrades Lifeway Foods (LWAY) to Buy
• SoundThinking (SSTI) PT Lowered to $8 at Cantor Fitzgerald