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Ingersoll-Rand (IR) is expected to report Q4 earnings Thursday with a conference call scheduled for 10:00 a.m. ET.

Guidance

Analysts are looking for Ingersoll-Rand to post a Q4 EPS of 97c on revenue of $2.28B. The consensus range is 75c-$1.03 for EPS and $2.13B-$2.34B for revenue, according to First Call. Ingersoll-Rand announced on December 17 that it executed a definitive agreement to acquire Trane Inc (TT) in a transaction valued at approximately $10.1B.

Investors will be listening to the conference call to to see how the company plans to integrate and profit from the strategic acquisition. Also note that Ingersoll-Rand announced on January 11 that it has taken a non-cash charge to earnings of discontinued operations of $449M relating to the company's liability for all pending and estimated future asbestos claims through 2053. This charge results from an increase in the company's recorded liability for asbestos claims by $538M, from $217M to $755M, offset by a corresponding $89M increase in its assets for probable asbestos-related insurance recoveries, which now total $250M.

Analyst Views

On December 18, Deutsche Bank upgraded Ingersoll-Rand shares to Buy from Hold based on valuation. On January 10, Lehman Brothers upgraded Ingersoll-Rand to Overweight from Equal Weight, citing the company's divestments and the recent Trane acquisition.
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