Honeywell Earnings Driven by Aerospace Margins
Honeywell International reported better-than-expected third-quarter results Friday before the markets opened.
Honeywell International Inc. (NYSE: HON) reported its third-quarter results Friday before the markets opened as $1.43 in earnings per share and $10.11 billion in revenue. That was against Thomson Reuters consensus estimates of $1.41 in earnings per share and revenue of $10.04 billion. In the third quarter from the previous year it reported earnings of $1.24 per share and $9.65 billion in revenue.
The company raised its guidance for the full year to earnings per share in the range of $5.50 to $5.55 and for revenue in the range of $40.3 billion to $40.4 billion. Thomson Reuters has consensus estimates for the full year of $5.54 in earnings per share and $40.39 billion in revenue.
The net income for Honeywell was roughly $1.19 billion spread across its three main segments:
- Aerospace revenue remained flat, posting only a small increase to $3.89 billion with a segment margin of 20.3% and a segment profit of 8%.
- Automation and Control Solutions revenue grew 9% to $3.67 billion, with a segment margin of 15.9% and a segment profit of 11%.
- Performance Materials and Technologies increased revenue 7% to $2.54 billion, with a segment margin of 17.5% and a segment profit of 8%.
Honeywell Chairman and CEO Dave Cote had this to say on the quarter:
Organic sales growth and a double-digit earnings increase highlighted Honeywell’s strong third quarter. … We are raising the low-end of our 2014 proforma EPS outlook by $0.05 to $5.50-5.55 (up 11%-12%), which brings us to the high-end of the initial guidance we provided almost a year ago. Looking ahead to 2015, we’re once again planning for a slow growth macro environment, but expect to continue delivering strong earnings growth.
Shares of Honeywell increased in the premarket by almost 5% to $89.11 from the previous close of $85.11.
The stock has a consensus price target of $106.53 and a 52-week trading range of $82.89 to $98.09. The company has a market cap of $67 billion.
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