September 30, 2011 at 08:31 AM EDT
Ingersoll-Rand Shares Plunge after Slashing Outlook (IR)

HVAC, refrigeration, and security products maker Ingersoll-Rand PLC (IR) on Friday cut its third quarter and full-year earnings forecasts, sending its shares lower in premarket trading.

The Dublin, Ireland-based company said it now expects third quarter earnings to range from 77 to 80 cents per share, down from a prior forecast of 85 to 95 cents. Its revenue outlook was also cut to a range of $3.9 billion to $3.95 billion, compared with a previous outlook of $4.05 billion to $4.15 billion.

Wall Street analysts are looking for much higher third quarter earnings of 91 cents per share, on revenue of $3.93 billion.

For the full year, IR slashed its outlook to $2.70 to $2.80 per share, down from an earlier estimate of $2.90 to $3.10. Revenue is now expected to range from $14.85 to $15 billion, down from $15.3 billion to $15.5 billion.

Analysts are looking for higher earnings of $2.96 per share on revenue of $14.83 billion.

Ingersoll-Rand shares fell $2.76, or -8.6%, in premarket trading Friday.

The Bottom Line
Shares of Ingersoll-Rand (IR) have a 1.50% dividend yield, based on last night’s closing stock price of $31.96. The stock has technical support in the $27-$28 price area. If the shares can firm up, we see overhead resistance around the $34-$36 price levels.

Ingersoll-Rand PLC (IR) is not recommended at this time, holding a Dividend.com DARS™ Rating of 2.9 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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