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Honeywell
🇺🇸 NASDAQ:HON
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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

Total Revenue
$8.95B
Previous year: $8.47B
+5.6%
EPS
$2.25
Previous year: $2.02
+11.4%
Segment Margin
21.8%
Previous year: 21.2%
+2.8%
Gross Profit
$2.97B
Previous year: $2.73B
+8.9%
Cash and Equivalents
$7.45B
Previous year: $11.1B
-32.8%
Free Cash Flow
$1.9B
Previous year: $911M
+108.5%
Total Assets
$60.3B
Previous year: $64.2B
-6.1%

Honeywell

Honeywell

Honeywell Revenue by Segment

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.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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