Honeywell International Inc. posted quarterly adjusted earnings of $2.25 per share, higher than the year-ago quarter’s $2.02 per share a year ago, and surpassing the Zacks Consensus Estimate of $2.16 per share (as reported in Zacks Equity Research).
Revenues of $8.95 billion, however, missed the Zacks Consensus Estimate by 1.37%. (as reported in Zacks Equity Research). It was $8.47 billion in the year-ago quarter. Organic sales rose +9%.
Honeywell’s Aerospace segment quarterly revenues grew +9% year over year. Building Technologies’ revenues rose +11% year-over-year, while Performance Materials and Technologies’ revenues total revenue increased +8%. Safety and Productivity Solutions revenues fell -7% owing to lower volumes in warehouse and workflow solutions and personal protective equipment.
For full-year 2022, Honeywell re-iterated its free cash flow expectation of $4.70-$5.10 billion. But it revised its forecast of operating cash flow to $5.20-$5.60 billion compared with prior estimate of $5.50-$5.90 billion. It now projects a segment margin of 21.6-21.8% (vs. prior forecast of 21.3-21.7%).
Honeywell now expects sales to be in the range of $35.40-$35.70 billion for 2022, compared with previous guidance of $35.50-$36.10 billion. Organic sales growth expectation is 6-7%, compared with previous projection of 5-7% .
The company now projects 2022 adjusted earnings per share in the range of $8.70-$8.80, boosting its outlook from prior forecast of $8.55-8.80.
HON may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 36 cases where HON's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
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