NASDAQ$HON

Honeywell International Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Honeywell's third quarter results met or exceeded guidance, with raised full-year outlook.

Honeywell's Q3 2022 results showcased strong performance, exceeding guidance for segment margin and earnings. The company reported a 6% increase in sales and a 9% organic growth. As a result of the company's third-quarter performance and management's outlook for the remainder of the year, full-year sales are now expected to be in the range of $35.4 billion to $35.7 billion.

  • Operating Margin increased by 90 Basis Points to 19.5%; Segment Margin increased by 60 Basis Points to 21.8%, exceeding the high end of guidance range by 60 bps.
  • Earnings Per Share reached $2.28, with Adjusted EPS at $2.25, surpassing the high end of guidance range by 5 Cents.
  • Operating Cash Flow surged by 86% to $2.1 Billion; Free Cash Flow increased by 108% to $1.9 Billion.
  • The company deployed $1.2 Billion of Capital towards Share Repurchases, Dividends, and Capital Expenditures and raised midpoint of organic sales growth

Headline financials

Total Revenue

$8.95B

Previous: $8.47B+5.6%
EPS (adj)

$2.25

Previous: $2.02+11.4%
Segment Profit Margin

21.8%

Previous: 21.2%+2.8%
Capital Expenditures

-$525M

Previous: $208M-352.4%
Free Cash Flow

$1.03B

Previous: $911M+12.7%
Net Income

$1.55B

Previous: $1.27B+21.9%
Operating Income

$1.95B

Previous: $1.58B+23.9%
Gross Profit

$2.97B

Previous: $2.73B+8.9%
Cash & Equivalents

$7.45B

Previous: $11.1B-32.8%
Total Assets

$60.3B

Previous: $64.2B-6.1%
Stock-Based Comp

$50M

Previous: $56M-10.7%

Revenue & EPS history

Honeywell · Revenue · Quarterly

$8.95B

Q3 2022+5.6%vs Q3 2021
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 has updated its full-year 2022 guidance.

Tailwinds

  • Full-year sales are expected to be in the range of $35.4B to $35.7B.
  • Organic growth is projected to be 6% to 7%.
  • Excluding the impact of COVID-driven mask sales declines and lost Russian sales, organic growth is expected to be 8% to 9%.
  • Segment margin expansion is anticipated to be in the range of 60 to 80 basis points.
  • Adjusted earnings per share are forecast to be in the range of $8.70 to $8.80.

Headwinds

  • Operating cash flow is expected to be in the range of $5.2B to $5.6B.
  • Free cash flow is expected to be $4.7B to $5.1B.
  • Segment margin expansion includes an approximate (30) basis point impact from investments in the Quantinuum business.
  • The guidance excludes potential future one-time items that are difficult to predict.
  • The forward-looking statements are subject to risks and uncertainties, including the impact of the COVID-19 pandemic and the Russia-Ukraine conflict.

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 Q3 2022

Historical avgQ3 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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