Nasty Ingersoll-Rand (IR) Profit Warning Wreaks Havoc
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Ingersoll-Rand (NYSE: IR) issued a profit warning Friday morning which is having ripple effects across the market. Specifically, the conglomerate cited its consumer-related businesses.
The owner of brands including Club Car, Schlage, Thermo King and Trane took down third-quarter EPS guidance from $0.85-$0.95 to $0.77-$0.80, and compared to the consensus of $0.91. For the year, the company now sees EPS of $2.70-$2.80, down from prior guidance of $2.90-$3.10 and the consensus of $2.96.
On the top line, the company sees Q3 revenue of $3.90-$3.95 billion, versus prior guidance of $4.05-$4.15 billion and the consensus of $3.81 billion. For the year revenue is seen at $14.85-$15.00 billion, versus $15.30-$15.50 billion previously and the consensus of $14.78 billion.
Ingersoll-Rand said revenue was negatively affected by slower-than-expected end-markets in several businesses.
The company said consumer-related businesses, such as residential heating, ventilation and air conditioning (HVAC), golf and residential security, were the most significantly affected, accounting for the majority of the lower volume since the previous guidance. Commercial security activity was also slower than expected.
Transport, industrial and commercial HVAC revenue has remained strong, according to the company.
Shares of Ingersoll-Rand are down 16 percent in early action Friday. A number of other stocks are also weaker on the news. Around the market:
Regal Beloit (NYSE: RBC) - 5 percent lower
Terex Corp. (NYSE: TEX) - 4 percent lower
SPX Corp (NYSE: SPW) - 3.8 percent lower
Dover Corp. (NYSE: DOV) - 3 percent lower
Emerson Electric Co. (NYSE: EMR) 2.6 percent lower
Deere & Company (NYSE: DE) - 2.5 percent lower
Rockwell Automation Inc. (NYSE: ROK) - 1.7 percent lower
Caterpillar Inc. (NYSE: CAT) - 1.7 percent lower
Honeywell International Inc. (NYSE: HON) - 1.5 percent lower
Tyco International Ltd. (NYSE: TYC) 1.4 percent lower
3M Co (NYSE: MMM) - 1.3 percent lower
General Electric Co (NYSE: GE) - 1 percent lower
The owner of brands including Club Car, Schlage, Thermo King and Trane took down third-quarter EPS guidance from $0.85-$0.95 to $0.77-$0.80, and compared to the consensus of $0.91. For the year, the company now sees EPS of $2.70-$2.80, down from prior guidance of $2.90-$3.10 and the consensus of $2.96.
On the top line, the company sees Q3 revenue of $3.90-$3.95 billion, versus prior guidance of $4.05-$4.15 billion and the consensus of $3.81 billion. For the year revenue is seen at $14.85-$15.00 billion, versus $15.30-$15.50 billion previously and the consensus of $14.78 billion.
Ingersoll-Rand said revenue was negatively affected by slower-than-expected end-markets in several businesses.
The company said consumer-related businesses, such as residential heating, ventilation and air conditioning (HVAC), golf and residential security, were the most significantly affected, accounting for the majority of the lower volume since the previous guidance. Commercial security activity was also slower than expected.
Transport, industrial and commercial HVAC revenue has remained strong, according to the company.
Shares of Ingersoll-Rand are down 16 percent in early action Friday. A number of other stocks are also weaker on the news. Around the market:
Regal Beloit (NYSE: RBC) - 5 percent lower
Terex Corp. (NYSE: TEX) - 4 percent lower
SPX Corp (NYSE: SPW) - 3.8 percent lower
Dover Corp. (NYSE: DOV) - 3 percent lower
Emerson Electric Co. (NYSE: EMR) 2.6 percent lower
Deere & Company (NYSE: DE) - 2.5 percent lower
Rockwell Automation Inc. (NYSE: ROK) - 1.7 percent lower
Caterpillar Inc. (NYSE: CAT) - 1.7 percent lower
Honeywell International Inc. (NYSE: HON) - 1.5 percent lower
Tyco International Ltd. (NYSE: TYC) 1.4 percent lower
3M Co (NYSE: MMM) - 1.3 percent lower
General Electric Co (NYSE: GE) - 1 percent lower
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