NASDAQ$HON

Honeywell International Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Honeywell's Q2 2020 earnings were significantly impacted by the COVID-19 pandemic and oil price volatility.

Honeywell reported a challenging second quarter due to the COVID-19 pandemic and oil price volatility, with sales down 19% and adjusted earnings per share of $1.26. The company focused on cost management, sales growth in strong demand areas, and investments in new technologies. They delivered $500 million in cost savings and funded over $250 million of repositioning. Honeywell also issued $3 billion of bonds and reduced their term loan from $6 billion to $3 billion, ending the quarter with $15.1 billion in cash and short-term investments.

  • Delivered $500 million of cost savings in the quarter and funded over $250 million of repositioning to drive further savings.
  • Generated $1.5 billion of operating cash flow and $1.3 billion of free cash flow, with an adjusted conversion of 140%.
  • Reported record high orders and backlog in Safety and Productivity Solutions driven by triple-digit growth in Intelligrated and Personal Protective Equipment.
  • Launched numerous innovative healthy offerings to address COVID-19-related customer needs.

Headline financials

Total Revenue

$7.48B

Previous: $9.24B-19.1%
EPS (adj)

$1.26

Previous: $2.10-40.0%
Operating Margin

13.6%

Previous: 19.1%-28.8%
Segment Profit Margin

18.5%

Previous: 21.3%-13.1%
Capital Expenditures

-$366M

Previous: -$312M-17.3%
Free Cash Flow

$715M

Previous: $1.23B-41.8%
Net Income

$1.08B

Previous: $1.54B-29.9%
Operating Income

-$6.82B

Previous: -$7.68B+11.2%
Gross Profit

$2.2B

Previous: $3.15B-30.1%
Cash & Equivalents

$13.8B

Previous: $8.23B+67.5%
Total Assets

$63.6B

Previous: $57.8B+10.1%
Stock-Based Comp

$34M

Previous: $34M+0.0%

Revenue & EPS history

Honeywell · Revenue · Quarterly

$7.48B

Q2 2020-19.1%vs Q2 2019
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

Honeywell · $3.4B total across 2 segments · Q2 2020

  • Industrial Automation
    $2.22B-18.9%
  • Building Automation
    $1.18B-18.8%

Forward guidance

Due to the evolving nature of the COVID-19 pandemic and related supply chain and market disruptions, Honeywell previously announced that it has suspended providing full financial guidance until the economic impact of COVID-19 stabilizes. The company expects ongoing top-line challenges due to the current market conditions, particularly in the aerospace and oil and gas sectors.

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 Q2 2020

Historical avgQ2 2020

+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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