MORRIS PLAINS, N.J. - Honeywell International Inc. (NASDAQ: NASDAQ:HON) reported first-quarter earnings of $2.25 per share, surpassing the analyst consensus of $2.17, and posted revenues of $9.1 billion, exceeding expectations of $9.03 billion.
The company's shares rose 2% in response to the earnings beat, signaling a positive market reaction.
The industrial conglomerate saw a 3% increase in both reported and organic sales compared to the same quarter last year, while operating margin improved by 130 basis points to 20.4%, and segment margin increased by 20 basis points to 22.2%.
Honeywell's backlog grew by 6% YoY to a record $32.0 billion, driven by $10.2 billion in orders, reflecting strong long-cycle customer demand, particularly in its commercial aviation and defense and space businesses.
CEO Vimal Kapur commented on the results, "Honeywell delivered a strong start to 2024. Organic growth was led by double-digit growth in both our commercial aviation and defense and space businesses."
He attributed the robust performance to a mix of recovering markets and strategic productivity actions that enabled margin expansion and over-delivery on adjusted earnings per share.
Looking ahead, Honeywell maintained its full-year guidance, projecting sales between $38.1 billion and $38.9 billion, with organic sales growth ranging from 4% to 6%. The company anticipates segment margins to be between 23.0% and 23.3%, with an expansion of 30 to 60 basis points.
Adjusted earnings per share are expected to be in the range of $9.80 to $10.10, indicating an increase of 7% to 10%. Analysts were looking for $38.48 billion.
Operating cash flow is forecasted to be between $6.7 billion and $7.1 billion, with free cash flow of $5.6 billion to $6.0 billion.
The midpoint of the full-year adjusted EPS guidance is $9.95, which is within the range of analyst expectations, suggesting that Honeywell's financial outlook aligns with market predictions. The company's strong start to the year and maintained guidance reflect confidence in its operational strategy and market position.
InvestingPro Insights
Honeywell International Inc. (NASDAQ: HON) has demonstrated resilience and growth, as evidenced by its recent earnings report. Delving into the financial health and stock performance of Honeywell provides additional context for investors considering this industrial powerhouse. The company's market capitalization stands at a robust $126.84 billion, reflecting its significant presence in the market.
InvestingPro data shows Honeywell's P/E ratio at 22.8, which is slightly above the adjusted ratio of 22.41 for the last twelve months as of Q4 2023. This indicates that investors are willing to pay a higher price for Honeywell's earnings, which could be a sign of confidence in the company's future growth. Additionally, the company's solid revenue growth of 3.37% over the last twelve months further confirms its upward trajectory in financial performance.
One of the InvestingPro Tips for Honeywell highlights its impressive track record of raising its dividend for 13 consecutive years, which, coupled with a history of maintaining dividend payments for 40 years, suggests a strong commitment to returning value to shareholders. Another tip points out Honeywell's low price volatility, providing investors with a relatively stable investment option in the often turbulent industrial conglomerate sector.
For those interested in deeper analysis and more InvestingPro Tips, Honeywell has a total of 9 tips available on InvestingPro. Readers looking to take advantage of these insights can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, offering a comprehensive view of the company's investment potential.
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