Honeywell's Q4 Earnings And Revenues Beat Estimates

Honeywell International Inc. (HON - Free Report) reported better-than-expected fourth-quarter 2018 results.

Earnings & Revenues

Adjusted earnings for the quarter were $1.91 per share, outpacing the Zacks Consensus Estimate of $1.88. The bottom line also improved 3.2% year over year. This upside primarily stemmed from the company’s stellar operational performance during the quarter.

Notably, Honeywell reported adjusted earnings of $8.01 for 2018, an increase of 12% from the prior year.

Honeywell International Inc. Price, Consensus and EPS Surprise

Honeywell International Inc. Price, Consensus and EPS Surprise | Honeywell International Inc. Quote

Revenues of $9,729 million for the fourth quarter surpassed the consensus estimate of $9,691 million. Notably, the top line declined 10.3% year over year. The fall was primarily attributable to impact of spin-offs of some of the company’s businesses in 2018. However, the top line improved 6% organically on the back of strength in its long-cycle businesses in U.S. defense, commercial aerospace as well as warehouse automation.

For 2018, the company reported total revenues of $41,802 million compared with $40,534 million in the previous year.

Segmental Break-Up

Revenues for Aerospace were $3,428 million, down 12% year over year. Honeywell Building Technologies revenues declined 31% to $1,802 million. Performance Materials and Technologies revenues were $2,802 million, down 1.8%. Safety and Productivity Solutions revenues improved 15.3% to $1,697 million.


The company’s total cost of sales in the reported quarter was $6,685 million, down 11.3% year over year. Selling, general and administrative expenses declined 9.5% to $1,524 million. Interest expenses and other financial charges were $90 million compared with $81 million a year ago.

Operating income margin for the fourth quarter was 15.6%, up 70 basis points year over year.

Balance Sheet/Cash Flow

1 2
View single page >> |

Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this ...

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.


Leave a comment to automatically be entered into our contest to win a free Echo Show.