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Sep 30, 2022
Honeywell Q3 2022 Earnings Report
Honeywell's third quarter results met or exceeded guidance, with raised full-year outlook.
Key Takeaways
Honeywell's Q3 2022 results showcased strong performance, exceeding guidance for segment margin and earnings. The company reported a 6% increase in sales and a 9% organic growth. As a result of the company's third-quarter performance and management's outlook for the remainder of the year, full-year sales are now expected to be in the range of $35.4 billion to $35.7 billion.
Operating Margin increased by 90 Basis Points to 19.5%; Segment Margin increased by 60 Basis Points to 21.8%, exceeding the high end of guidance range by 60 bps.
Earnings Per Share reached $2.28, with Adjusted EPS at $2.25, surpassing the high end of guidance range by 5 Cents.
Operating Cash Flow surged by 86% to $2.1 Billion; Free Cash Flow increased by 108% to $1.9 Billion.
The company deployed $1.2 Billion of Capital towards Share Repurchases, Dividends, and Capital Expenditures and raised midpoint of organic sales growth
Honeywell
Honeywell
Honeywell Revenue by Segment
Revenue by Segment
Aerospace Revenue
CapyFin.com Forward Guidance
Honeywell has updated its full-year 2022 guidance.
Positive Outlook
- Full-year sales are expected to be in the range of $35.4B to $35.7B.
- Organic growth is projected to be 6% to 7%.
- Excluding the impact of COVID-driven mask sales declines and lost Russian sales, organic growth is expected to be 8% to 9%.
- Segment margin expansion is anticipated to be in the range of 60 to 80 basis points.
- Adjusted earnings per share are forecast to be in the range of $8.70 to $8.80.
Challenges Ahead
- Operating cash flow is expected to be in the range of $5.2B to $5.6B.
- Free cash flow is expected to be $4.7B to $5.1B.
- Segment margin expansion includes an approximate (30) basis point impact from investments in the Quantinuum business.
- The guidance excludes potential future one-time items that are difficult to predict.
- The forward-looking statements are subject to risks and uncertainties, including the impact of the COVID-19 pandemic and the Russia-Ukraine conflict.