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.

Costs/Margins

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

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