For manufacturer Ingersoll-Rand (IR), the summer of 2011 was a tough one, at least for the share price. While the overall market experienced an approximate 10 percent decline, the value of Ingersoll-Rand shares dropped by about 40 percent. During this time frame, however, the company posted some pretty nice quarterly results.

Ingersoll-Rand has its holding company headquarters in Ireland for tax purposes, but this a U.S. company which has been listed on the NYSE for more than a century. The company's main lines of business are residential and commercial climate control through its Trane and ThermoKing brands; security services with its Schlage brand locks and advanced commercial security services; and an industrial technologies division produces Ingersoll-Rand commercial products and golf carts.

For the second quarter of 2011, Ingersoll-Rand reported revenues of $3.9 billion, up 12 percent from a year earlier, and net income of 88 cents per share, up 24 cents. Reported operating margin was 12.2 percent, up from 10.4 percent a year earlier. Overall, those are nice results in a tough economy. However, the consensus estimate for the quarter was earnings of 93 cents per share, so probably the miss was a factor in the share price woes.

Full year earnings are forecast to come in at about $3 per share compared to $2.34 earned in 2010. The revenue forecast is $14.8 billion, up 5 percent over 2010.

Aggressive buyback

The IR board of directors has authorized an aggressive share buyback program, with an authorized spending limit of $2 billion with the expectation of buying up to 20 million of the outstanding shares. With a current market cap of about $11 billion, the share repurchase program could result in a significant boost to net earnings per share for 2012.

The analysts at UBS recently upgraded IR to buy from neutral. The upgrade came because the analysts believe the stock represents a good value as the company benefits from an economic recovery. The company reports next on Oct. 20.