Honeywell International Beats Analyst Estimates on EPS

Seth Jayson, The Motley Fool
Updated

Honeywell International (NYS: HON) reported earnings on July 18. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Honeywell International met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew and GAAP earnings per share increased.


Gross margins dropped, operating margins improved, and net margins grew.

Revenue details
Honeywell International reported revenue of $9.44 billion. The 13 analysts polled by S&P Capital IQ looked for revenue of $9.56 billion on the same basis. GAAP reported sales were 3.8% higher than the prior-year quarter's $9.09 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.14. The 14 earnings estimates compiled by S&P Capital IQ forecast $1.11 per share. GAAP EPS of $1.14 for Q2 were 12% higher than the prior-year quarter's $1.02 per share. (The prior-year quarter included $0.02 per share in earnings from discontinued operations.)

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 26.6%, 10 basis points worse than the prior-year quarter. Operating margin was 13.6%, 70 basis points better than the prior-year quarter. Net margin was 9.6%, 70 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $9.60 billion. On the bottom line, the average EPS estimate is $1.14.

Next year's average estimate for revenue is $38.29 billion. The average EPS estimate is $4.49.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,213 members rating the stock outperform and 75 members rating it underperform. Among 329 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 318 give Honeywell International a green thumbs-up, and 11 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Honeywell International is outperform, with an average price target of $66.95.

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The article Honeywell International Beats Analyst Estimates on EPS originally appeared on Fool.com.

Seth Jaysonhad no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is the co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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