Ingersoll-Rand Co. on Wednesday provided greater clarity on its full-year guidance, suggesting that the diversified industrial manufacturer's 2009 results will not be as bad as previously thought.
The company also reported first-quarter results above analyst estimates, and shares soared $2.62, or 15.7 percent, to close at $19.35. The stock has ranged from $11.46 to $46.66 over the past year.
The Bermuda-based company in late March reduced its full-year projection for earnings-per-share from continuing operations from a prior range of between $1.85 and $2.25 to an implied estimate of $1.40. On Wednesday, the company projected full-year income from continuing operations of $1.40 to $1.90 per share, excluding an estimated 11 cents per share in restructuring expenses.
Analysts polled by Thomson Reuters estimated profit of $1.40 per share for the year. Analyst projections typically exclude one-time items.
Ingersoll-Rand also said it expects this year's revenue to decline 14 percent to 19 percent from the $13.23 billion recorded last year. That implies 2009 revenue in a range of $10.71 billion to $11.38 billion.
Earlier this year, the company forecast 2009 revenue declining 6 percent to 7 percent, which implies a range of $12.3 billion to $12.43 billion.
Analysts expect revenue of $13.82 billion.
Ingersoll-Rand also projected second-quarter earnings of 30 cents to 50 cents per share from continuing operations on revenue of $3.5 billion to $3.7 billion. The forecast excludes an estimated 7 cents per share in restructuring expenses.
Analysts polled by Thomson Reuters project income of 44 cents per share on $3.66 billion in revenue.
"Based on our recent order pattern and a review of customer and channel activity, we expect reduced activity levels for most of our major end markets for 2009," the company said in a statement. "We expect the most pronounced reductions to be in North America and Western Europe, especially in the first half of the year."