Ingersoll-Rand Reports EPS Below Estimates

Deutsche Bank has published a research report on Ingersoll-Rand IR after the company reported EPS results below analyst estimates. In the report, Deutsche Bank writes "IR reported 62c, below 64c DBe/65c Street - a highly unusual outcome this Q - underlying results were significantly weaker than the headline. Despite 3% revenue upside, incremental margins ex-items were disappointing at 17% vs. 31% DBe; Segment Income ex-items of $390m came in 6% below - 6c miss. We suspect that the price/inflation gap has widened significantly due to copper inflation. FCF was disappointing at just $179m ($0.6bn DBe) even after accounting for a $201m pension contribution." Deutsche bank maintains its Buy rating and $53 price target. Ingersoll-Rand closed yesterday at $49.03.