Ingersoll-Rand (NYSE: IR) reported Q4 EPS of $1.40, $0.02 worse than the analyst estimate of $1.42. Revenue for the quarter came in at $4.15 billion versus the consensus estimate of $4.16 billion.

Highlights (fourth quarter 2019 versus fourth quarter 2018, unless otherwise noted):

• Reported revenues up 7 percent; organic revenues* up 5 percent led by the Climate segment
• Exceptional cash conversion for full-year 2019; cash flow from continuing operating activities of $2 billion; free cash flow* of $1.8 billion, 118 percent of adjusted net earnings*
• Fiscal 2019 capital deployment of $510 million in dividends, $1.5 billion in acquisitions and $750 million in share repurchases
• GAAP full-year continuing EPS of $5.61; adjusted continuing EPS* of $6.37, up 14 percent
• Reverse Morris Trust transaction with GDI on track for early 2020

“We marked another year of top quartile financial performance in 2019 with 6 percent revenue growth, 14 percent EPS growth and free cash flow of 118 percent of net earnings, successfully navigating a rapidly evolving global economic and geopolitical landscape,” said Michael W. Lamach, chairman and chief executive officer of Ingersoll Rand. “Our highly engaged team consistently executed our strategy focused on global energy efficiency and sustainability mega trends to deliver strong and differentiated results for our customers and shareholders.

While we grew in all of our Climate businesses, our Commercial HVAC business growth was truly outstanding, with high-single digit percentage growth globally and low-teens percentage growth in North America. It was a challenging year for our Industrial businesses with a decline in short cycle industrial spending globally; however, our team ended 2019 with better than expected fourth quarter revenues and operating income.”

Lamach continued, “Our businesses are well-positioned as we progress toward the close of the Reverse Morris Trust transaction with Gardner Denver, and the establishment of a pure-play global leader in climate technologies along with a global leader in mission-critical flow creation and industrial solutions. We’re excited about the potential for both companies to unlock value for shareholders.

Looking at 2020 and the new Trane Technologies, we remain confident that we have the fundamental ingredients for another year of strong financial performance. We’ve entered the year with broadly favorable end markets, strong backlog and a proven business operating system that enables us to continue navigating ongoing global uncertainties, drive strong earnings per share growth and deliver powerful cash flow to execute our balanced capital allocation strategy.”

Full-Year 2020 Guidance

• Full year 2020 guidance for Trane Technologies is included in the company's earnings presentation found at www.ingersollrand.com in the Investor Relations section.
• The company's 2020 guidance excludes the Industrial segment. Industrial segment guidance for 2020 will be given by the combined Industrial segment / Gardner Denver business after completion of the proposed transaction.

For earnings history and earnings-related data on Ingersoll-Rand (IR) click here.