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Mar 31, 2022
Honeywell Q1 2022 Earnings Report
Honeywell's first quarter results were strong, with adjusted EPS exceeding the high end of the guidance range. The company raised its full-year adjusted EPS range by 10 cents and the midpoint of sales guidance.
Key Takeaways
Honeywell announced strong first-quarter results, meeting or exceeding guidance despite a challenging operating environment. The company reported a 1% increase in organic sales and an adjusted EPS of $1.91, exceeding the high end of the guidance range. As a result, Honeywell raised the midpoint of its full-year sales guidance and increased its full-year adjusted earnings per share guidance.
Sales of $8.4 billion were at the high end of previous guidance, down 1% year over year, but up 1% on an organic basis.
Earnings per share was $1.64, and adjusted earnings per share was $1.91, exceeding the high end of the guidance range.
$2.0 billion in capital was deployed, including $1.0 billion to share repurchases as part of a $4 billion commitment in 2022.
The company raised its 2022 adjusted EPS range and the midpoint of sales guidance.
Revenue by Segment
Forward Guidance
Honeywell expects full-year sales to be in the range of $35.5 billion to $36.4 billion, up 4% to 7% organically. Adjusted earnings per share is expected to be in the range of $8.50 to $8.80. Operating cash flow is expected to be in the range of $5.7 billion to $6.1 billion, and free cash flow is expected to be $4.7 billion to $5.1 billion.
Positive Outlook
- Full-year sales are expected to be in the range of $35.5B - $36.4B.
- Organic growth is expected to be between 4% - 7%.
- Segment margin expansion is expected to be in the range of 10 to 50 basis points.
- Adjusted earnings per share is now expected to be in the range of $8.50 to $8.80.
- Operating cash flow is expected to be in the range of $5.7B - $6.1B.
Challenges Ahead
- Full year organic growth excluding impact of COVID-driven mask sales declines and lost Russian sales is expected to be 6%-9%.
- Segment margin expansion includes an approximate (30) basis point impact from investments in the Quantinuum business.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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