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Sep 30, 2024
Honeywell Q3 2024 Earnings Report
Honeywell's third quarter results were reported, with segment margin and adjusted earnings per share exceeding guidance despite lower revenues. The company updated its full-year sales, segment margin, adjusted earnings per share, and cash flow guidance ranges.
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
Honeywell Revenue by Segment
Revenue by Segment
Industrial Automation Revenue
CapyFin.comBuilding Automation Revenue
CapyFin.comEnergy & Sustainability Revenue
CapyFin.com 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income