On April 20, Honeywell
- Segment profit growth and fewer shares outstanding helped earnings per share grow nearly 27%.
- Margins improved slightly with the help of favorable foreign currency translation.
- Management raised 2007 sales, EPS, and free cash flow guidance.
- Honeywell and its rival Goodrich Corp.
(NYSE:GR) earn four stars in the Motley Fool CAPS online stock rating community. Competitors United Technologies(NYSE:UTX) and Johnson Controls(NYSE:JCI) hold the full five-star status.
(Figures in millions, except per-share data.)
Income Statement Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$8,041 |
$7,241 |
11.0% |
|
Net Profit |
$526 |
$431 |
22.0% |
|
EPS |
$0.66 |
$0.52 |
26.9% |
|
Diluted Shares |
802 |
836 |
(4.1%) |
Get back to basics with the income statement.
Margin Checkup
|
Q1 2007 |
Q1 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
23.5% |
22.7% |
0.9 |
|
Operating Margin |
10.1% |
9.2% |
0.9 |
|
Net Margin |
6.5% |
6.0% |
0.6 |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$1,378 |
$1,442 |
(4.4%) |
|
Accounts Rec.* |
$5,873 |
$6,375 |
(7.9%) |
|
Inventory |
$3,749 |
$3,804 |
(1.4%) |
|
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$3,582 |
$8,549 |
(58.1%) |
|
Long-Term Debt |
$4,704 |
$3,964 |
18.7% |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$578 |
$239 |
141.8% |
|
Capital Expenditures |
$120 |
$122 |
(1.6%) |
|
Free Cash Flow |
$458 |
$117 |
291.5% |
Free cash flow is a Fool's best friend.
Related Foolishness:
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