Honeywell International Earnings: Here’s What Investors Need to Know

Honeywell International Inc. (NYSE:HON) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are flat.

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Honeywell International Inc. Earnings Cheat Sheet

Results: Net income increased to $251 million ($1.1 per diluted share) in the quarter versus a net loss of $310 million in the year-earlier quarter.

Revenue: Rose 1.13% to $9.58 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Honeywell International Inc. reported adjusted net income of $1.1 per share. By that measure, the company beat the mean analyst estimate of $1.09. It beat the average revenue estimate of $9.51 billion.

Quoting Management: Honeywell Chairman and CEO Dave Cote said, “In a weak global economy, we grew sales 3% and earnings by 11%, while expanding margins to record levels and continuing to generate strong cash flow. We outperformed while also continuing to invest in seed planting initiatives like new products and services, global growth, cost competitiveness, and strengthening our key processes — Honeywell Operating System, Velocity Product Developmentā„¢, and Functional Transformation. Our balanced mix of long- and short-cycle businesses and expansion in high growth regions has offset lower demand in some of our short-cycle businesses, European weakness, and foreign exchange headwinds. We’ve also maintained a strong long-cycle backlog, now a record $15.8 billion, with new platform wins across many of our businesses last year.”

Key Stats:

Revenue increased 2.55% from $9.34 billion in the previous quarter. Net income decreased 73.58% from $950 million in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.14 to a profit $1.13. For the current year, the average estimate has moved down from a profit of $4.49 to a profit of $4.48 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)