NASDAQ$HON

Honeywell International Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Honeywell's first quarter results surpassed guidance across all metrics, with raised full-year sales, segment margin, and adjusted EPS guidance.

Honeywell reported strong first-quarter results, exceeding guidance on all metrics. Sales reached $8.9 billion, up 6% reported and 8% organically. The company raised its full-year sales, segment margin, and adjusted EPS guidance. Backlog increased to a record $30.3 billion, and the acquisition of Compressor Controls Corporation was announced.

  • Sales reached $8.9 billion, with a reported increase of 6% and an organic increase of 8%.
  • Operating margin increased by 390 basis points to 19.1%, while segment margin increased by 90 basis points to 22.0%.
  • Earnings per share and adjusted earnings per share both reached $2.07, exceeding the high end of guidance by 11 cents.
  • Backlog increased to a record $30.3 billion, up 6% year over year.

Headline financials

Total Revenue

$8.86B

Previous: $8.38B+5.8%
EPS (adj)

$2.22

Previous: $1.91+16.2%
Organic Sales Growth

8.0%

Previous: 1.0%+700.0%
Segment Profit Margin

22.0%

Previous: 21.1%+4.3%
Capital Expenditures

-$193M

Previous: -$183M-5.5%
Free Cash Flow

$1.2B

Previous: $951M+26.3%
Net Income

$1.39B

Previous: $1.13B+22.9%
Operating Income

$1.95B

Previous: $1.77B+10.2%
Gross Profit

$3.37B

Previous: $2.7B+24.6%
Cash & Equivalents

$6.87B

Previous: $9.28B-26.0%
Total Assets

$59.9B

Previous: $63.4B-5.5%
Stock-Based Comp

$59M

Previous: $60M-1.7%

Revenue & EPS history

Honeywell · Revenue · Quarterly

$8.86B

Q1 2023+5.8%vs Q1 2022
Beat estimate in 10 of 15 quarters(67%)
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 raised the midpoint of its full-year sales, segment margin, and adjusted earnings per share guidance.

Tailwinds

  • Full-year sales are now expected to be $36.5B - $37.3B
  • Organic sales growth in the range of 3% - 6%
  • Segment margin is now expected to be in the range of 22.3% - 22.6%
  • Segment margin expansion of 60 - 90 bps
  • Adjusted earnings per share is now expected to be in the range of $9.00 - $9.25

Headwinds

  • Operating cash flow is still expected to be in the range of $4.9B - $5.3B
  • Free cash flow is still expected to be in the range of $3.9B - $4.3B
  • Free cash flow excluding the net impact of settlements is still expected to be in the range of $5.1B - $5.5B
  • Uncertain macroeconomic environment
  • Pension headwind

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 2023

Historical avgQ1 2023

+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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