Ingersoll Rand Slides 1.5% with $240M Rank 500 Volume Navigates Mixed Earnings Outlook and Strategic Acquisitions

Generated by AI AgentAinvest Market Brief
Wednesday, Jul 30, 2025 6:12 pm ET1min read
Aime RobotAime Summary

- Ingersoll Rand (IR) dropped 1.5% on July 30, 2025, with $240M trading volume, ranking 500th in market activity.

- Q2 2025 earnings anticipate $1.84B revenue (+2.1% YoY) but 3.6% lower adjusted EPS to 80 cents, amid strong Industrial and Precision segments.

- Strategic acquisitions (SSI Aeration, ILC Dover) and 12.4% growth in science tech segment offset margin pressures from rising expenses and currency risks.

- A "Hold" Zacks Rank and -0.75% EPS gap highlight mixed outlook, while a high-risk trading strategy (top 500 volume stocks) achieved 166.71% returns since 2022.

Ingersoll Rand (IR) fell 1.50% on July 30, 2025, with a trading volume of $240 million, ranking 500th in the market. The company is set to report Q2 2025 earnings after the close on July 31. Analysts expect revenues of $1.84 billion, up 2.1% year-over-year, but adjusted earnings per share to decline 3.6% to 80 cents. Historical performance shows IR has exceeded consensus estimates in two of the last four quarters, with an average surprise of 2.2%.

Strength in the Industrial Technologies & Services segment, driven by higher demand for industrial vacuums, compressors, and power tools, is projected to lift its revenue to $1.47 billion, a 0.3% annual increase. The Precision & Science Technologies segment is expected to grow 12.4% to $380.9 million, fueled by life sciences contracts and space suit production. Strategic acquisitions, including SSI Aeration in February 2025 and ILC

in June 2024, are anticipated to bolster market position and technical capabilities.

However, rising selling and administrative expenses are likely to pressure margins, with adjusted EBITDA expected to fall 80 basis points to 26.6%. Foreign currency fluctuations, stemming from significant international operations, may further impact profitability. The Earnings ESP model suggests a -0.75% gap between the most accurate estimate (79 cents) and the Zacks consensus (80 cents), while the company holds a Zacks Rank of 3 (Hold).

The strategy of purchasing the top 500 stocks by daily trading volume and holding for one day generated a 166.71% return from 2022 to the present, outperforming the benchmark by 137.53%. The approach achieved a 31.89% compound annual growth rate and a Sharpe ratio of 1.14, underscoring its robust risk-adjusted returns over the period.

Comments



Add a public comment...
No comments

No comments yet