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Ingersoll-Rand -4% as revised guidance falls short of lofty expectations

Published 07/26/2017, 03:07 PM
© Reuters.  Ingersoll-Rand -4% as revised guidance falls short of lofty expectations
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  • Ingersoll-Rand (IR -4.2%) is sharply lower despite beating Q2 earnings and revenue estimates, making it the latest stock Wells Fargo (NYSE:WFC) analyst Richard Kwas says is "suffering from high expectations."
  • Kwas says IR's earnings conference call highlighted commodity headwinds similar to other multi-industrial names and tougher pricing in international markets: "Price/cost is now a headwind of 40 bps Y/Y vs. a benefit of 10 bps for the full year. Based on call commentary, we find it tough to conclude that the headwinds impact the full year performance that disproportionately."
  • Investors also may be underwhelmed by revised FY 2017 guidance for EPS of $4.50 vs. $4.53 analyst consensus estimate on 4.5% higher revenues, which equates to ~$14.1B vs. $13.9B consensus.
  • Now read: Ingersoll-Rand plc 2017 Q2 - Results - Earnings Call Slides


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