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Sep 30, 2020

Honeywell Q3 2020 Earnings Report

Honeywell's third-quarter earnings were reported, with sequential sales and segment profit growth observed across all segments.

Key Takeaways

Honeywell reported a year-over-year sales decline of 14% but demonstrated sequential improvements in sales growth, margin expansion, and adjusted earnings per share. The company focused on cost management, delivering over $450 million in savings during the quarter.

Reported Double-Digit Growth in Defense and Space, Warehouse Automation, Personal Protective Equipment, and Recurring Software Sales

Generated 320 Basis Points of Sequential Operating Margin Improvement

Delivered Over $450 Million of Cost Savings; Funded $124 Million of Repositioning to Drive Further Savings

Reinstated Financial Guidance; Expects Fourth Quarter EPS of $1.97 to $2.02 and Full-Year EPS of $6.78 to $6.83, Full-Year Adjusted EPS1 of $7.00 to $7.05

Total Revenue
$7.8B
Previous year: $9.09B
-14.2%
EPS
$1.56
Previous year: $2.08
-25.0%
Segment Margin
19.9%
Previous year: 21.2%
-6.1%
Gross Profit
$2.41B
Previous year: $3.05B
-20.8%
Cash and Equivalents
$14B
Previous year: $10.9B
+28.7%
Free Cash Flow
$758M
Previous year: $1.28B
-40.7%
Total Assets
$63.5B
Previous year: $60.1B
+5.6%

Honeywell

Honeywell

Honeywell Revenue by Segment

Forward Guidance

Honeywell expects fourth quarter sales of $8.2 billion to $8.5 billion, representing a year-over-year organic sales decline of 11% to 14%; segment margin of 21.1% to 21.3%, down 10 to 30 basis points; and earnings per share of $1.97 to $2.02, down 2% to 4% adjusted. Full-year sales are expected to be in the range of $31.9 billion to $32.2 billion, representing a year-over-year organic sales decline of 12% to 13%; segment margin of 20.4% to 20.5%, down 60 to 70 basis points; and adjusted earnings per share1 of $7.00 to $7.05, down 14%.

Revenue & Expenses

Visualization of income flow from segment revenue to net income