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Mar 31, 2020

Honeywell Q1 2020 Earnings Report

Honeywell reported strong earnings growth for Q1 2020, with EPS of $2.21, despite COVID-19 impacts. The company suspended full-year guidance due to the pandemic's uncertainty.

Key Takeaways

Honeywell announced strong earnings growth for the first quarter of 2020 despite significant impacts from the COVID-19 pandemic. The company reported first-quarter earnings per share of $2.21, above guidance, operating profit growth of 3%, segment profit growth of 2%, and segment margin expansion of 140 basis points.

Operating Income Margin increased by 150 Basis Points to 20.0%.

Earnings per Share increased by 15% to $2.21.

The company generated $0.9 Billion of Operating Cash Flow and $0.8 Billion of Free Cash Flow.

Full Year Guidance was suspended due to Uncertainty Related to the COVID-19 Pandemic.

Total Revenue
$8.46B
Previous year: $8.88B
-4.7%
EPS
$2.21
Previous year: $1.92
+15.1%
Segment Margin
21.8%
Previous year: 20.4%
+6.9%
Operating Income Margin
20%
Previous year: 18.5%
+8.1%
Gross Profit
$2.93B
Previous year: $3.01B
-2.5%
Cash and Equivalents
$7.72B
Previous year: $8.63B
-10.5%
Free Cash Flow
$800M
Previous year: $993M
-19.4%
Total Assets
$57.4B
Previous year: $58.6B
-1.9%

Honeywell

Honeywell

Honeywell Revenue by Segment

Forward Guidance

Due to the evolving nature of the COVID-19 pandemic and related supply chain and market disruptions, Honeywell announced that it has temporarily suspended its full-year financial guidance until the economic impact of COVID-19 stabilizes. The company expects ongoing top-line challenges due to the current market conditions, particularly in the aerospace and oil and gas sectors.

Challenges Ahead

  • Suspended full-year financial guidance.
  • Ongoing top-line challenges are expected.
  • Impacts from the COVID-19 pandemic.
  • Related supply chain disruptions.
  • Market disruptions

Revenue & Expenses

Visualization of income flow from segment revenue to net income