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.
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.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
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.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
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.
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.
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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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is the co-advisor of Motley 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.