Ingersoll-Rand investors (IR) were in a buying frenzy Friday afternoon after the manufacturer reported stronger-than-expected third-quarter earnings, riding the wave of an improving housing market that has single-family home orders hitting fresh highs.
The Irish maker of air conditioners, heating systems and refrigerators reported net earnings of $165.9 million, or 56 cents a share, compared with a year-earlier profit of $321.6 million, or $1.07.
Excluding special items, Ingersoll-Rand said it earned $1.16 cents, above average analyst estimates of $1.10 in a Thomson Reuters poll. Revenue for the three months ended Sept. 30 was up 4% to $3.7 billion, matching the Street’s view.
"We continue to advance our operating system and capabilities reflected in our ability to capture growth in key markets, while delivering on our productivity and pricing initiatives," Ingersoll-Rand CEO Michael Lamach said in a statement.
Sales in its heating, ventilation and AC systems group were up 4%, while those of its specialized locks increased 9% as home construction increased, leading to heightened demand for industrial products like refrigerators.
However the company hinted at slowing growth in the current quarter, projecting fourth-quarter EPS to miss estimates at its current range of 85 cents to 90 cents.
For the full year, it continues to see earnings in the range of $3.55 to $3.60 a share on sales of $14.3 billion to $14.4 billion, mostly in line with the consensus view of $3.59 a share on revenue of $14.38 billion.
Shares of Ingersoll-Rand were up more than 6.5% to $67.75 recently after touching a 52-week high of $68.33 earlier in the day. They are up about 41% so far this year.