Categories Earnings, Industrials

Earnings: Honeywell beats estimates in Q1, lifts forecast

Honeywell International Inc. (NYSE: HON) reported a 2% decline in earnings for the first quarter of 2019 as the spin-offs of the Transportation Systems business and the Homes and ADI Global Distribution business dragged net sales lower by 15%. However, the results exceeded analysts’ expectations. The company raised its 2019 sales and earnings guidance.

Net income declined by 1.6% to $1.42 billion while earnings rose by 2% to $1.92 per share helped by the lower weighted average number of shares outstanding. Adjusted earnings grew by 13% to $1.92 per share.

Honeywell International Inc. (NYSE: HON) reported a 2% decline in earnings for the first quarter of 2019.

Net sales dropped by 15% to $8.88 billion due to the spin-offs of the Transportation Systems business and the Homes and ADI Global Distribution business as well as the unfavorable impact of foreign currency translation. Organic sales grew 8% led by the company’s long-cycle businesses in commercial aerospace, defense, and warehouse and process automation, and strong demand for commercial fire and security products.

Looking ahead into the full year 2019, the company lifted its sales outlook to the range of $36.5 billion to $37.2 billion from a prior range of $36 billion to $36.9 billion. Earnings guidance is raised to the range of $7.90 to $8.15 per share from the $7.80 to $8.10 per share range.

The company increased its organic sales growth forecast to the range of 3% to 6% from the previous range of 2% to 5%. Operating cash flow guidance was narrowed to the range of $6 billion to $6.5 billion from the prior range of $5.9 billion to $6.5 billion. Segment margin is still predicted to be in the range of 20.7% to 21% for the full year 2019.

Also read: Kimberly-Clark Q1 2019 earnings preview

For the first quarter, Aerospace sales increased by 10% on an organic basis driven by robust demand from business aviation original equipment manufacturers, continued strength in the U.S. and international defense business, and growth in the commercial aviation aftermarket.

Honeywell Building Technologies sales were up 9% on an organic basis driven by strong demand for commercial fire and security offerings, and global building projects growth. Safety and Productivity Solutions sales grew by 10% on an organic basis driven by continued double-digit sales growth in the Intelligrated warehouse automation business, robust demand in sensing and IoT, and strong demand across China.

Performance Materials and Technologies sales were up 5% on an organic basis helped by the broad-based growth in automation projects and maintenance and migration services in Process Solutions, as well as continued demand for fluorine products.

Shares of Honeywell ended Wednesday’s regular session up 0.02% at $162.89 on the NYSE. Following the earnings release, the stock inched up over 1% in the premarket session.

 

Get access to timely and accurate verbatim transcripts that are published within hours of the event.

Most Popular

United Parcel Service (UPS) seems on track to regain lost strength

Cargo giant United Parcel Service, Inc. (NYSE: UPS) ended fiscal 2023 on a weak note, reporting lower revenues and profit for the fourth quarter. The company experienced a slowdown post-pandemic

IPO Alert: What to look for when Boundless Bio goes public

Boundless Bio is preparing to debut on the Nasdaq stock market this week, and become the latest addition to the list of biotech firms that have launched IPOs this year.

Nike (NKE) bets on innovation and partnerships to return to high growth

Sneaker giant Nike, Inc. (NYSE: NKE) has been going through a rough patch for some time, with sales coming under pressure from weak demand and rising competition. Post-pandemic, the company

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top