Ingersoll-Rand Cuts Outlook for Q3 and Full Year (IR)

Ingersoll-Rand Plc (NYSE: IR), a provider of products, services and solutions to improve the comfort of air in homes and buildings, transport and protect food and perishables , and secure homes and commercial properties, on Friday lowered its outlook for the third quarter and full year. The company cited lower-than-expected demand in North America for residential and commercial security systems, stronger dollar and other pressure on its businesses for the downward revision.

Ingersoll-Rand shares plunged in trading on Friday after the company cut its outlook. The stock ended the day 12.11% lower at $28.09, touching a new 52-week low of $26.13.

Ingersoll-Rand lowered its outlook for third-quarter earnings from continuing operations to $0.77-$0.80 per share, compared with $0.85-$0.95 per share. The company also lowered its revenue forecast for the quarter. It now expects third-quarter revenue to come in between $3.9 billion and $3.95 billion, compared with previous guidance of $4.05-$4.15 billion. The company said that its third-quarter revenue was hurt by weak end markets in several businesses.

Ingersoll-Rand also lowered its outlook for the full year. The company now expects full-year earnings from continuing operations to come in between $2.70 per share and $2.80 per share. It expects full year revenue to come in between $14.85 billion and $15 billion, compared with previous guidance range of $15.3-$15.5 billion. The company said that soft demand is likely to remain a factor for full-year results. The company also said that it expects the strengthening of the U.S. dollar against the euro to have a negative affect in the fourth quarter.

Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.