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Jun 30, 2024
Honeywell Q2 2024 Earnings Report
Honeywell delivered strong second quarter results and beat earnings guidance.
Key Takeaways
Honeywell reported a 5% increase in sales to $9.6 billion and an 8% increase in adjusted earnings per share to $2.49, exceeding guidance. The company updated its full-year outlook, expecting sales between $39.1 billion and $39.7 billion and adjusted EPS between $10.05 and $10.25.
Sales reached $9.6 billion, with a 5% reported increase and a 4% organic increase, achieving the high end of previous guidance.
Earnings per share were $2.36, and adjusted earnings per share was $2.49, exceeding the high end of previous guidance.
Orders increased by 4%, driven by strength in Building Automation and Energy and Sustainability Solutions businesses.
Deployed $6.4 billion of capital to M&A, dividends, share repurchases, and capital expenditures, including the acquisition of Access Solutions.
Revenue by Segment
Forward Guidance
Honeywell updated its full-year sales, segment margin, adjusted earnings per share, and cash flow guidance.
Positive Outlook
- Full-year sales are now expected to be $39.1B - $39.7B.
- Organic sales growth is projected to be in the range of 5% - 6%.
- Adjusted earnings per share are anticipated to be $10.05 - $10.25.
- Operating cash flow is expected to be $6.6B - $7.0B.
- Free cash flow is projected to be $5.5B - $5.9B.
Challenges Ahead
- Segment margin is now expected to be in the range of 23.3% - 23.5%.
- Segment margin contraction of 20 basis points to flat year over year is expected.
- The updated adjusted earnings per share represents a growth of 6% to 8% year over year, which is a decrease from the previous guidance of 7%-10%.
- The updated free cash flow is a slight decrease from the previous guidance of $5.6B - $6.0B.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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