NASDAQ$HON

Honeywell International Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Honeywell's first quarter results were strong, with adjusted EPS exceeding the high end of the guidance range. The company raised its full-year adjusted EPS range by 10 cents and the midpoint of sales guidance.

Honeywell announced strong first-quarter results, meeting or exceeding guidance despite a challenging operating environment. The company reported a 1% increase in organic sales and an adjusted EPS of $1.91, exceeding the high end of the guidance range. As a result, Honeywell raised the midpoint of its full-year sales guidance and increased its full-year adjusted earnings per share guidance.

  • Sales of $8.4 billion were at the high end of previous guidance, down 1% year over year, but up 1% on an organic basis.
  • Earnings per share was $1.64, and adjusted earnings per share was $1.91, exceeding the high end of the guidance range.
  • $2.0 billion in capital was deployed, including $1.0 billion to share repurchases as part of a $4 billion commitment in 2022.
  • The company raised its 2022 adjusted EPS range and the midpoint of sales guidance.

Headline financials

Total Revenue

$8.38B

Previous: $8.45B-0.9%
EPS (adj)

$1.91

Previous: $1.92-0.5%
Organic Sales Growth

1.0%

Previous: -2.0%+150.0%
Segment Profit Margin

21.1%

Previous: 21.0%+0.5%
Capital Expenditures

-$183M

Previous: -$221M+17.2%
Free Cash Flow

$951M

Previous: $1.21B-21.1%
Net Income

$1.13B

Previous: $1.43B-20.5%
Operating Income

$1.77B

Previous: -$7.07B+125.0%
Gross Profit

$2.7B

Previous: $2.75B-1.6%
Cash & Equivalents

$9.28B

Previous: $11.7B-20.8%
Total Assets

$63.4B

Previous: $63.6B-0.3%
Stock-Based Comp

$60M

Previous: $77M-22.1%

Revenue & EPS history

Honeywell · Revenue · Quarterly

$8.38B

Q1 2022-0.9%vs Q1 2021
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Honeywell · $5.82B total across 3 segments · Q1 2021

  • Energy & Sustainability
    $2.35B
  • Industrial Automation
    $2.12B
  • Building Automation
    $1.36B

Forward guidance

Honeywell expects full-year sales to be in the range of $35.5 billion to $36.4 billion, up 4% to 7% organically. Adjusted earnings per share is expected to be in the range of $8.50 to $8.80. Operating cash flow is expected to be in the range of $5.7 billion to $6.1 billion, and free cash flow is expected to be $4.7 billion to $5.1 billion.

Tailwinds

  • Full-year sales are expected to be in the range of $35.5B - $36.4B.
  • Organic growth is expected to be between 4% - 7%.
  • Segment margin expansion is expected to be in the range of 10 to 50 basis points.
  • Adjusted earnings per share is now expected to be in the range of $8.50 to $8.80.
  • Operating cash flow is expected to be in the range of $5.7B - $6.1B.

Headwinds

  • Full year organic growth excluding impact of COVID-driven mask sales declines and lost Russian sales is expected to be 6%-9%.
  • Segment margin expansion includes an approximate (30) basis point impact from investments in the Quantinuum business.
  • Free cash flow is expected to be $4.7B - $5.1B.
  • Operating margin contracted by 260 basis points to 15.2% due to a $183 million charge related to the substantial suspension of its operations in Russia
  • Safety and Productivity Solutions sales for the first quarter decreased 15% on an organic basis year over year due to lower personal protective equipment and warehouse automation volume.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+0.6%

Avg return

Earnings day

+0.4%

Avg return

5 days after

+2.0%

Avg return

30 days after

60%

44 / 73 earnings

Positive

+7.7%

Q3 2022

Best reaction

-7.7%

Q4 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.5%-3.2%+3.6%
Q4 2025+4.5%+6.6%+12.4%
Q3 2025+6.4%+3.8%-2.4%
Q2 2025-0.7%-1.4%-3.8%
Q1 2025+5.4%+6.7%+12.2%
Q4 2024-5.6%-6.9%-3.5%
Q3 2024-5.6%-6.5%+4.0%
Q2 2024-5.1%-5.2%-5.2%
Q1 2024-0.7%-1.1%+2.5%
Q4 2023-3.0%-4.3%-1.8%
Q3 2023-0.6%+2.9%+8.6%
Q2 2023-6.3%-7.1%-10.5%
Q1 2023+4.7%+3.9%+1.5%
Q4 2022-1.9%-0.6%-4.8%
Q3 2022+7.7%+6.7%+15.7%
Q2 2022+4.8%+3.0%+5.1%
Q1 2022+3.7%+8.4%+3.4%
Q4 2021-7.7%-6.3%-9.7%
Q3 2021-3.1%-3.9%-2.7%
Q2 2021-1.5%-1.0%-2.2%
Q1 2021-3.4%-2.8%-2.6%
Q4 2020-3.6%-1.8%-0.2%
Q3 2020+5.5%+8.7%+27.2%
Q2 2020-1.9%+0.6%+2.5%
Q1 2020-4.7%-6.2%+2.8%
Q4 2019-3.9%-0.8%-9.1%
Q3 2019+1.2%+3.2%+11.1%
Q2 2019+2.6%+3.7%-2.1%
Q1 2019+3.3%+5.5%+4.3%
Q4 2018+3.0%+3.7%+8.4%
Q3 2018-1.7%-6.3%-1.2%
Q2 2018+4.2%+7.1%+5.2%
Q1 2018+0.3%-0.7%+0.1%
Q4 2017-0.2%-1.3%-4.2%
Q3 2017+1.6%+1.7%+2.0%
Q2 2017+2.0%+2.6%+0.0%
Q1 2017+4.9%+5.1%+6.2%
Q4 2016+1.0%+0.0%+6.0%
Q3 2016+1.0%+1.2%+3.7%
Q2 2016-2.7%-3.1%-2.1%
Q1 2016-1.5%
Q4 2015+5.0%
Q3 2015-1.3%
Q2 2015+2.7%
Q1 2015-1.3%
Q4 2014+2.5%
Q3 2014+4.2%
Q2 2014+2.3%
Q1 2014-0.1%
Q4 2013+0.5%
Q3 2013-2.4%
Q2 2013+0.1%
Q1 2013+4.4%
Q4 2012+1.0%
Q3 2012+1.4%
Q2 2012+6.3%
Q1 2012+2.1%
Q4 2011+0.7%
Q3 2011+6.9%
Q2 2011-3.3%
Q1 2011+2.7%
Q4 2007+0.2%
Q4 2010+0.2%
Q3 2010+1.8%
Q2 2010-0.5%
Q1 2009+1.7%
Q1 2010+0.2%
Q4 2009+1.8%
Q3 2008-2.1%
Q3 2009-2.1%
Q4 2008+2.8%
Q2 2009+2.8%
Q2 2008+2.8%

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