Honeywell Earnings Top Forecasts As Aerospace Profits Impress
A 20% gain in Aerospace profits, as well as a record-high order book of $30.5 billion, highlighted Honeywell's better-than-expected second quarter earnings.
Honeywell International (HON) - Get Free Report posted modestly firmer-than-expected second quarter earnings Thursday, and lifted the lower-end of its full-year profit guidance, powered by impressive gains in its aerospace division.
Honeywell said adjusted earnings for the three months ending in June were pegged at $2.23 per share, up 6.2% from the same period last year and firmly ahead of the Street consensus forecast of $2.21 per share. Group revenues edged 1.7% higher to $9.1 billion, compared to analysts' forecasts of a $9.17 billion tally. Operating margins rose 270 basis point to 20.6%.
The group's overall backlog, meanwhile, was up 4% to a record high of $30.5 billion.
Looking into the back half of the year, Honeywell said it sees revenues of between $36.7 billion and $37.3 billion, organic sales growth of between 4% and 6% . Honeywell's adjusted earnings forecast ranges between $9.05 and $9.25 per share, a 5 cent improvement from the lower-end of its prior forecast.
"Honeywell performed exceptionally well in the second quarter, meeting or exceeding guidance for all metrics," said CEO Vimal Kapur, who succeeded longtime Honeywell boss Darius Adamczyk as CEO on June 1. "We invested in multiple new technologies and adjacencies utilizing our robust M&A playbook, including completing our acquisition of Compressor Controls Corporation for approximately $700 million."
"Honeywell's Accelerator operating system continues to drive outstanding results and maximize shareowner value as we navigate a challenging macro environment," he added. "This operating system, along with continued growth in our key end markets and our technologically differentiated portfolio of solutions, is enabling us to raise our full-year 2023 guidance."
Honeywell shares were marked 1.3% lower in pre-market trading immediately following the earnings release to indicate an opening bell price of $205.59 each.
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