The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Honeywell International missed slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share expanded.
Margins grew across the board.
Honeywell International recorded revenue of $9.34 billion. The 18 analysts polled by S&P Capital IQ predicted net sales of $9.51 billion on the same basis. GAAP reported sales were 0.5% higher than the prior-year quarter's $9.30 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 $1.20. The 18 earnings estimates compiled by S&P Capital IQ anticipated $1.13 per share. GAAP EPS of $1.20 for Q3 were 10% higher than the prior-year quarter's $1.09 per share. (The prior-year quarter included $0.22 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 27.1%, 270 basis points better than the prior-year quarter. Operating margin was 13.9%, 360 basis points better than the prior-year quarter. Net margin was 10.2%, 90 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $9.73 billion. On the bottom line, the average EPS estimate is $1.12.
Next year's average estimate for revenue is $38.04 billion. The average EPS estimate is $4.48.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,225 members out of 1,298 rating the stock outperform, and 73 members rating it underperform. Among 340 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 331 give Honeywell International a green thumbs-up, and nine 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 $68.05.
Can your portfolio provide you with enough income to last through retirement? You'll need more than Honeywell International. Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks." Click here for instant access to this free report.
- Add Honeywell International to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.