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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.
Honeywell
Honeywell
Honeywell Revenue by Segment
Revenue by Segment
Aerospace Revenue
CapyFin.com 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.
- Free cash flow is expected to be $4.7B - $5.1B.
- Operating margin contracted by 260 basis points to 15.2% due to a $183 million charge related to the substantial suspension of its operations in Russia
- Safety and Productivity Solutions sales for the first quarter decreased 15% on an organic basis year over year due to lower personal protective equipment and warehouse automation volume.