Ingersoll-Rand "market-perform"

04/21/03 - H.C. Wainwright & Co.

NEW YORK, April 21 (New Ratings) - Analysts at H.C. Wainwright & Company, reiterate their “market-perform” rating on Ingersoll-Rand Company (IR), while reducing their estimates for the company.

Shares of Ingersoll-Rand, a company providing climate control, industrial solutions, infrastructure development and security and safety products, are currently trading at $42.80.

According to H.C. Wainwright’s research note, the company’s EPS and revenues were in-line with expectations, while the earnings remained below expectations in Q103. The increase in revenues is accredited by the analysts to acquisitions, favourable currency rates and increased sales by the company. The company’s divestment in its division, Engineered Solutions, also helped Ingersoll-Rand pay off debts, thereby contributing to the earnings in Q103. The analysts say that the company’s operating profits were flat during the period. This was because of an adverse product mix, rising production costs, investements in new product development and the implementation of growth plans, add the analysts.

H.C. Wainwright mentions that the company’s profitability may decline in Q203 on account of increased costs and a sluggish market, and the trend may continue in 1H03. The analysts believe that the company’s stock is attractively valued at its current level.

The EPS estimate for 2002 is $3.10, while the EPS estimates for 2003 and 2004 have been reduced from $3.20 to $3.10 and from $3.60 to $3.50, respectively. The P/E estimates for 2003 and 2004 are 13.8x, and 12.2x, respectively.

H.C. Wainwright reiterates its “market perform” rating on Ingersoll-Rand Company.