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Honeywell International Beats Analyst Estimates on EPS

By Seth Jayson – Updated Apr 10, 2017 at 1:47PM

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Just the facts, Fool.

Honeywell International (NYSE: HON) reported earnings on April 19. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Honeywell International met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue was unchanged. GAAP earnings per share expanded significantly.

Margins expanded across the board.

Revenue details
Honeywell International reported revenue of $9.33 billion. The 21 analysts polled by S&P Capital IQ hoped for revenue of $9.44 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.

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 $1.21. The 20 earnings estimates compiled by S&P Capital IQ predicted $1.14 per share. GAAP EPS of $1.21 for Q1 were 16% higher than the prior-year quarter's $1.04 per share.

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 27.3%, 120 basis points better than the prior-year quarter. Operating margin was 14.4%, 150 basis points better than the prior-year quarter. Net margin was 10.4%, 160 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $9.75 billion. On the bottom line, the average EPS estimate is $1.22.

Next year's average estimate for revenue is $39.29 billion. The average EPS estimate is $4.95.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,237 members out of 1,307 rating the stock outperform, and 70 members rating it underperform. Among 348 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 337 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 $78.17.

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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 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 position in any of the stocks mentioned. 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.

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