Honeywell Q4 2019 Earnings Report
Key Takeaways
Honeywell announced strong Q4 2019 results with organic sales up 2% and adjusted EPS of $2.06, up 11% ex-spins. The company expanded operating margin by 220 basis points and segment margin by 130 basis points. They generated over $2 billion in cash during the quarter and expect 2020 earnings per share of $8.60 - $9.00.
Organic sales increased by 2% due to aerospace strength and building management products demand.
Adjusted EPS reached $2.06, an 11% increase excluding spin-offs.
Segment margin expanded by 130 basis points.
Intelligrated orders increased by over 100% year-over-year.
Honeywell
Honeywell
Honeywell Revenue by Segment
Forward Guidance
Honeywell expects sales of $36.7 billion to $37.8 billion, representing year-over-year organic growth of 0% to 3%; segment margin expansion of 20 to 50 basis points; earnings per share of $8.60 to $9.00, up 5% to 10% adjusted; operating cash flow of $6.6 billion to $7.1 billion, and free cash flow of $5.7 billion to $6.2 billion.
Positive Outlook
- Sales of $36.7B - $37.8B
- Organic Growth 0% - 3%
- Segment Margin 21.3% - 21.6%
- Expansion Up 20 - 50 bps
- Earnings Per Share $8.60 - $9.00
Revenue & Expenses
Visualization of income flow from segment revenue to net income