NYSE$IR

Ingersoll Rand Inc. · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Reported a decrease in revenue due to the softness in the Upstream Energy business, while adjusted EBITDA margin remained strong.

Gardner Denver reported Q4 2019 results with revenues of $606 million, a decrease of 15% compared to the prior year. Net income was $26 million, or $0.12 per share. Adjusted EBITDA was $135 million with a margin of 22.3%. The company generated $90 million in free cash flow.

  • Revenues were $606 million, down 14% from the prior year excluding the impact of FX.
  • Net income was $26 million and adjusted net income was $77 million.
  • Adjusted EBITDA was $135 million with a margin of 22.3%.
  • Free cash flow was $90 million.

Headline financials

Total Revenue

$606M

Previous: $713M-15.0%
EPS (adj)

$0.37

Previous: $0.57-35.1%
Orders

$308M

Previous: $338M-8.8%
Adjusted EBITDA

$135M

No prior period
Adjusted EBITDA Margin

22.3%

No prior period
Free Cash Flow Margin

347.0%

No prior period
Free Cash Flow

$90M

No prior period
Net Income

$26M

Previous: $94.5M-72.5%
Operating Income

$47.6M

Previous: $134M-64.5%
Gross Profit

$225M

Previous: $269M-16.2%
Cash & Equivalents

$506M

Previous: $221M+128.5%
Total Assets

$4.63B

Previous: $4.49B+3.1%
Stock-Based Comp

$5.8M

Previous: -$3.3M+275.8%

Revenue & EPS history

Ingersoll Rand · Revenue · Quarterly

$606M

Q4 2019-15%vs Q4 2018
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Revenue by segment

Ingersoll Rand · $400M total across 2 segments · Q4 2019

  • Industrial Technologies & Services
    $333M-1.4%
  • Precision & Science Technologies
    $67M-1.6%

Forward guidance

Gardner Denver expects low single digit revenue declines with FX expected to be relatively flat to prior year levels. Adjusted EBITDA is expected to be $540 million to $570 million and free cash flow to be within a range of $280 million to $300 million.

Tailwinds

  • Industrial segment growth is expected to be flat to down low single digits.
  • Mid and downstream Energy and Medical businesses are expected to perform comparatively better.
  • Free cash flow to reported net income conversion in excess of 100%.
  • Focus on operational efficiencies, such as i2V and cost control.
  • Launch of new consumable offerings continues to see strong traction in the market.

Headwinds

  • Upstream Energy is expected to be down approximately 20%.
  • Guidance does not include any anticipated total year impact from the Coronavirus outbreak.
  • Shipment deferrals are expected in the first quarter.
  • General industrial market is expected to remain soft.
  • Customers are taking longer to convert quotes to order in the mid- and downstream businesses.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2019

Historical avgQ4 2019

+0.6%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+1.9%

Avg return

30 days after

65%

26 / 40 earnings

Positive

+11.7%

Q3 2018

Best reaction

-10.9%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.1%-6.9%-11.7%
Q4 2025+4.6%+3.2%-12.8%
Q3 2025-3.4%-0.4%+2.0%
Q1 2025+0.5%+2.2%+7.1%
Q4 2024-7.4%-7.4%-11.5%
Q3 2024-3.4%+0.4%+7.1%
Q2 2024-7.7%-12.0%-7.5%
Q1 2024-6.8%-3.4%+0.1%
Q4 2023+3.4%+0.3%+4.6%
Q3 2023+8.1%+7.5%+19.1%
Q2 2023+1.7%+2.9%+6.0%
Q1 2023-0.0%+3.2%+7.5%
Q4 2022-0.2%+0.2%-4.6%
Q3 2022+2.1%+5.8%+8.4%
Q2 2022+2.2%+2.7%-2.0%
Q1 2022+0.7%-4.3%+8.1%
Q4 2021-5.2%-4.8%-5.9%
Q3 2021+1.6%+3.0%+4.0%
Q2 2021-0.1%+0.3%+9.6%
Q1 2021+0.1%-5.7%-3.1%
Q4 2020+3.9%+5.6%+10.1%
Q3 2020+10.9%+15.2%+26.9%
Q2 2020+3.4%+7.3%+14.3%
Q1 2020-10.9%-9.2%+5.7%
Q4 2019+2.0%-5.1%-47.9%
Q3 2019+0.7%+0.2%+4.1%
Q2 2019-6.0%-9.1%-13.6%
Q1 2019+6.3%+6.6%+6.7%
Q4 2018+1.8%+2.4%+7.2%
Q3 2018+11.7%+13.8%+3.5%
Q2 2018-3.1%+1.9%-2.3%
Q1 2017+2.5%+1.7%+6.5%
Q1 2018+0.5%-1.6%+3.8%
Q4 2015-8.1%-8.0%-4.5%
Q4 2017-2.0%-5.3%-1.6%
Q3 2016+0.1%-0.5%+7.0%
Q3 2017+9.4%+9.5%+17.1%
Q4 2016+3.4%+1.5%+1.9%
Q2 2016+3.4%+1.5%+1.9%
Q2 2017+3.4%+6.8%+5.3%
Q1 2016
Q3 2015
Q3 2014
Q1 2013
Q4 2012
Q3 2012
Q2 2012

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