What Really Drove Ingersoll Rand’s Revenues in 1Q16?

Was 1Q16 Really Such an Outstanding Quarter for Ingersoll Rand?

(Continued from Prior Part)

Ingersoll Rand’s 1Q16 revenue at a glance

Ingersoll Rand’s (IR) 1Q16 revenue stood $2.89 billion, which is 0.5% higher than the market consensus of $2.88 billion. Revenue for the quarter increased by 0.2% over 1Q15, due to better execution, organic growth, and operating leverage. According to IR’s management, the Climate segment’s end market conditions have been in a good position in most regions including North America, Europe, and Asia-Pacific.

Honeywell’s (HON) 1Q16 revenues stood at $9.5 billion, which is 3.4% higher than its $9.2 billion in revenues in 1Q15. ABB Limited’s (ABB) 1Q16 revenues stood at $7.9 billion, which is 7.6% lower than its $8.5 billion in revenues in 1Q15. Lennox International’s (LII) 1Q16 revenue stood at $715 million, which is 4.2% higher than its revenues of $686 million in 1Q15.

ETF investments

IR is a part of the iShares Morningstar Mid-Cap ETF (JKG) and accounts for ~1.1% of the fund’s total holdings. Investors in this ETF may benefit if IR continues to deliver and achieves targets set for 2016. Weyerhaeuser (WY), Neilson Holding (NLSN), and NVIDIA (NVDA) are among the top ten holdings of the fund, accounting for ~1.7%, ~1.3%, and ~1.2%, respectively, of JKG’s total holdings. IR is also part of the S&P 500 (SPY).

Continue to the next part for more on Ingersoll Rand’s segmental performance in 1Q16.

Continue to Next Part

Browse this series on Market Realist:

• Part 1 - Behind Ingersoll Rand’s Outstanding 1Q16

• Part 3 - Understanding the Crucial Role of Ingersoll Rand’s Climate Segment in 1Q16

• Part 4 - Inside Ingersoll Rand’s Order Book in 1Q16