Honeywell Gains On Strong Q2 Results; Beats Street Expectations

  • Honeywell International Inc HON reported a second-quarter sales growth of 2% year-over-year to $8.95 billion, +4% on an organic basis, beating the consensus of $8.69 billion.
  • Adjusted EPS was $2.10 (+4% Y/Y), beating the consensus of $2.03.
  • The total segment margin expanded by 50 bps to 20.9%, and the operating margin contracted 20 bps to 17.9%.
  • Aerospace sales increased 5% Y/Y to $2.9 billion, and segment margin expanded by 80 bps to 26.5%.
  • Honeywell Building Technologies sales increased by 9% Y/Y to $1.53 billion, and segment margin expanded by 110 bps to 23.5%.
  • Performance Materials and Technologies sales increased by 6% Y/Y to $2.69 billion, and segment margin expanded by 150 bps to 22.3%.
  • Safety and Productivity Solutions sales decreased by 12% Y/Y to $1.83 billion, and segment margin contracted by 140 bps to 12.6%.
  • Honeywell’s net cash provided by operating activities year-to-date totaled $825 million, compared to $2.26 billion a year ago.
  • Honeywell’s orders increased 12% Y/Y; Backlog was up 12% to $29.5 billion, led by the company’s long-cycle businesses.
  • "The continued recovery of our key commercial aviation, defense, energy, and non-residential end markets, our commercial excellence, and our technologically differentiated portfolio of solutions will allow us to capitalize on near-term growth opportunities and remain highly resilient amid ongoing uncertainties,” commented Darius Adamczyk, chairman, and CEO.
  • FY22 Outlook: Honeywell expects sales of $35.5 billion - $36.1 billion (prior $35.5 billion -$36.4 billion) vs. the consensus of $35.82 billion, representing 5% - 7% organic growth. It expects segment margin of 21.3% - 21.7% (prior 21.1% - 21.5%).
  • Honeywell sees adjusted EPS of $8.55 - $8.80 (prior $8.50 - $8.80) vs. the consensus of $8.68. It expects operating cash flow of $5.5 billion - $5.9 billion (prior $5.7 billion - $6.1 billion), with free cash flow of $4.7 billion – $5.1 billion.
  • Price Action: HON shares are trading higher by 2.54% at $188.32 on the last check Thursday.
  • Photo Via Wikimedia Commons
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