Honeywell Q3 2024 Earnings Report
Key Takeaways
Honeywell reported a 6% increase in sales and a 3% increase in organic sales year-over-year. Adjusted earnings per share increased by 8% year over year. The company has also updated its full-year sales, segment margin, adjusted earnings per share, and cash flow guidance.
Sales of $9.7 billion, reported sales up 6%, organic sales up 3%.
Operating Margin of 19.1% and Segment Margin of 23.6%, above high end of previous guidance.
Earnings Per Share of $2.16 and Adjusted Earnings Per Share of $2.58, above high end of previous guidance.
Closed $1.9 Billion Acquisition of CAES Systems and $1.8 Billion Acquisition of Air Products' LNG Business.
Honeywell
Honeywell
Forward Guidance
Honeywell updated its full-year sales, segment margin, adjusted earnings per share, and cash flow guidance ranges. Full-year sales are now expected to be $38.6 billion to $38.8 billion with organic sales growth of 3% to 4%. Segment margin is now expected to be in the range of 23.4% to 23.5%. Adjusted earnings per share is now expected to be in the range of $10.15 to $10.25. Operating cash flow is now expected to be in the range of $6.2 billion to $6.5 billion, with free cash flow of $5.1 billion to $5.4 billion.
Positive Outlook
- Full-year sales are expected to be $38.6B - $38.8B.
- Organic sales growth of 3% - 4%.
- Segment margin is expected to be in the range of 23.4% - 23.5%.
- Adjusted earnings per share is expected to be in the range of $10.15 - $10.25.
- Operating cash flow is expected to be in the range of $6.2B - $6.5B.
Challenges Ahead
- Free cash flow is expected to be $5.1B - $5.4B, lower than previous guidance.
- Full-year sales guidance lowered from $39.1B - $39.7B to $38.6B - $38.8B.
- Organic growth guidance lowered from 5% - 6% to 3% - 4%.
- Operating Cash Flow guidance lowered from $6.6B - $7.0B to $6.2B - $6.5B.
- Segment margin expansion down 10 - Flat bps year over year.