We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Honeywell International Inc. (HON - Free Report) reported better-than-expected first-quarter 2022 results, wherein both earnings and revenues surpassed estimates.
Earnings & Revenues
Adjusted earnings came in at $1.91 per share, surpassing the Zacks Consensus Estimate of $1.86. The bottom line fell 0.5% year over year.
Honeywell’s first-quarter revenues were $8,376 million, beating the consensus estimate of $8,350 million. The top line decreased 1% year over year on a reported basis. The decline was attributable to supply-chain constraints and a decrease in COVID mask sales. However, revenues increased 1% on an organic basis.
Segmental Breakup
Aerospace’s quarterly revenues were $2,749 million, up 4.4% year over year. Honeywell Building Technologies’ revenues increased 5.2% to $1,429 million. Performance Materials and Technologies’ revenues totaled $2,453 million, up 4.6%, while that for Safety and Productivity Solutions decreased 17.7% to $1,744 million.
Honeywell International Inc. Price, Consensus and EPS Surprise
The company’s total cost of sales in the reported quarter was $5,674 million, down 0.6% year over year. Selling, general and administrative expenses were $1,431 million, up 15.8%. Interest expenses and other financial charges were $85 million compared with $90 million a year ago.
Operating income in the first quarter was $1,271 million, down 15.8% on a year-over-year basis. The operating income margin was 15.2%, down 260 basis points.
Balance Sheet/Cash Flow
Exiting first-quarter 2022, Honeywell had cash and cash equivalents of $9,281 million compared with $10,959 million in the previous quarter. Long-term debt was $12,636 million, lower than $14,254 million recorded at the end of the previous quarter.
In the first three months of 2022, the company generated $36 million in cash from operating activities compared with $978 million in the year-ago period. In the first three months of the year, capital expenditure was $183 million compared with $221 million incurred in the year-ago period.
Free cash flow in the quarter was $50 million compared with $757 million in the year-ago period.
Guidance
Honeywell updated guidance for full-year 2022. For the year, the company anticipates earnings to be in the range of $8.50 to $8.80 per share, higher than $8.40 to $8.70 guided earlier. It anticipates revenues to be between $35.5 billion and $36.4 billion, with organic revenues expected to be up 4-7%. Notably, it previously anticipated revenues within $35.4 billion to $36.4 billion.
For 2022, Honeywell expects operating cash flow in the range of $5.7 billion to $6.1 billion and free cash flow to be between $4.7 billion and $5.1 billion.
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #3 (Hold).
In the past 60 days, GFF’s earnings estimates have increased 9% for fiscal 2022 (ending September 2022). The stock has declined 15.7% in the past three months.
Alcoa Corporation (AA - Free Report) presently sports a Zacks Rank #1. Its earnings surprise in the last four quarters was 11.5%, on average.
In the past 60 days, AA’s earnings estimates have increased 72.1% for 2022. The stock has rallied 24.5% in the past three months.
Ferguson plc (FERG - Free Report) presently carries a Zacks Rank of 2 (Buy). FERG delivered a trailing four-quarter earnings surprise of 14.2%, on average.
Earnings estimates of Ferguson have increased 7% for fiscal 2022 (ending July 2022) in the past 60 days. FERG’s shares have declined 19.7% in the past three months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Honeywell's (HON) Q1 Earnings & Revenues Beat Estimates
Honeywell International Inc. (HON - Free Report) reported better-than-expected first-quarter 2022 results, wherein both earnings and revenues surpassed estimates.
Earnings & Revenues
Adjusted earnings came in at $1.91 per share, surpassing the Zacks Consensus Estimate of $1.86. The bottom line fell 0.5% year over year.
Honeywell’s first-quarter revenues were $8,376 million, beating the consensus estimate of $8,350 million. The top line decreased 1% year over year on a reported basis. The decline was attributable to supply-chain constraints and a decrease in COVID mask sales. However, revenues increased 1% on an organic basis.
Segmental Breakup
Aerospace’s quarterly revenues were $2,749 million, up 4.4% year over year. Honeywell Building Technologies’ revenues increased 5.2% to $1,429 million. Performance Materials and Technologies’ revenues totaled $2,453 million, up 4.6%, while that for Safety and Productivity Solutions decreased 17.7% to $1,744 million.
Honeywell International Inc. Price, Consensus and EPS Surprise
Honeywell International Inc. price-consensus-eps-surprise-chart | Honeywell International Inc. Quote
Costs/Margins
The company’s total cost of sales in the reported quarter was $5,674 million, down 0.6% year over year. Selling, general and administrative expenses were $1,431 million, up 15.8%. Interest expenses and other financial charges were $85 million compared with $90 million a year ago.
Operating income in the first quarter was $1,271 million, down 15.8% on a year-over-year basis. The operating income margin was 15.2%, down 260 basis points.
Balance Sheet/Cash Flow
Exiting first-quarter 2022, Honeywell had cash and cash equivalents of $9,281 million compared with $10,959 million in the previous quarter. Long-term debt was $12,636 million, lower than $14,254 million recorded at the end of the previous quarter.
In the first three months of 2022, the company generated $36 million in cash from operating activities compared with $978 million in the year-ago period. In the first three months of the year, capital expenditure was $183 million compared with $221 million incurred in the year-ago period.
Free cash flow in the quarter was $50 million compared with $757 million in the year-ago period.
Guidance
Honeywell updated guidance for full-year 2022. For the year, the company anticipates earnings to be in the range of $8.50 to $8.80 per share, higher than $8.40 to $8.70 guided earlier. It anticipates revenues to be between $35.5 billion and $36.4 billion, with organic revenues expected to be up 4-7%. Notably, it previously anticipated revenues within $35.4 billion to $36.4 billion.
For 2022, Honeywell expects operating cash flow in the range of $5.7 billion to $6.1 billion and free cash flow to be between $4.7 billion and $5.1 billion.
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #3 (Hold).
Some better-ranked companies are discussed below.
Griffon Corporation (GFF - Free Report) presently sports a Zacks Rank #1 (Strong Buy). GFF’s earnings surprise in the last four quarters was 97%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, GFF’s earnings estimates have increased 9% for fiscal 2022 (ending September 2022). The stock has declined 15.7% in the past three months.
Alcoa Corporation (AA - Free Report) presently sports a Zacks Rank #1. Its earnings surprise in the last four quarters was 11.5%, on average.
In the past 60 days, AA’s earnings estimates have increased 72.1% for 2022. The stock has rallied 24.5% in the past three months.
Ferguson plc (FERG - Free Report) presently carries a Zacks Rank of 2 (Buy). FERG delivered a trailing four-quarter earnings surprise of 14.2%, on average.
Earnings estimates of Ferguson have increased 7% for fiscal 2022 (ending July 2022) in the past 60 days. FERG’s shares have declined 19.7% in the past three months.