Honeywell Q1 Results Beat, Raises Full Year Low-End of EPS Forecast

Honeywell International Inc. HON revealed its net income grew 4.4% to $1.196 billion in the first quarter from $1.146 billion in the prior year quarter. Its earnings also grew 8.5 percent to $1.53 a share from $1.41 a share and topped the Street analysts' estimations by $0.03 a share.

Honeywell's net sales for the three-month period grew 3.6 percent to $9.52 billion from $9.2 billion in the previous year quarter. Street predicted revenue of $9.37 billion. While product sales accounted for $7.62 billion, services sales represented $1.93 billion.

The company's Chairman and CEO, Dave Cote, said "Honeywell had a strong start to 2016, delivering on our sales and earnings commitments in the first quarter. Earnings per share increased 9% on continued execution across the portfolio. Core organic sales were up 1%, above the high-end of our guidance, driven by acceleration in Commercial Aftermarket and Transportation Systems within Aerospace, continued growth in our residential, commercial, and China businesses within ACS, and higher sales in Process Solutions and Fluorine Products in PMT."

He added, "We announced and closed three acquisitions within ACS and acquired the remaining 30% interest in UOP Russell, which further strengthens our Great Positions in Good Industries. We also opportunistically repurchased over $1 billion of shares during the quarter, and funded approximately $40 million in new restructuring projects."

Moving ahead, Honeywell said it was boosting its low end of its full year earnings forecast to $6.55-$6.70 a share, which was up by 7–10 percent. Street analysts predict $6.61 a share. The company indicated it was committed to its full year core organic sales growth, as well as free cash flow guidance.

Cote concluded by saying, "Looking ahead, our message and our planning will not change. We will support growth where there are opportunities to drive outperformance, be cautious in our sales planning, plan costs and spending conservatively, and continue to support the seed planting for new products, services, geographies, and process improvements that allow us to perform well now and in the future."