Honeywell International Inc. Edges Out Earnings Estimates

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Honeywell released the earnings results from its fourth fiscal quarter before opening bell this morning, posting adjusted earnings of $1.43 per share on $10.27 billion in sales, a 1% year over year decline. Analysts had been expecting earnings per share of $1.42 on $10.21 billion in revenue for the quarter.

Net earnings for the fourth quarter were $1.20 per share, compared to $1.19 per share for the same quarter a year ago. For the full year, sales rose 3% to $40.3 billion. Earnings per share increased 12% to $5.56 per share, while reported earnings per share were $5.33.

Honeywell beats top end of guidance

Sales in Honeywell’s Aerospace segment fell 6% on a reported basis but rose 4% on an organic basis. Factors affecting the reported sales were incentives for manufacturers, the divesture of the company’s Friction Materials business and negative foreign exchange impacts from the strengthening of the U.S. dollar. Segment profits fell 14%, while margins contracted 160 basis points, falling to 17.3%.

The company’s Performance Materials and Technologies saw flat sales on a reported basis and a 3% increase organically due to higher licensing for UOP, growth in the Process Solutions business and higher Advanced Materials sales. Profits rose 6%, while margins expanded 90 basis points to 16.5%.

Honeywell management provides guidance for 2015

Honeywell management said they expect adjusted earnings for the full year to be between $5.95 and $6.15 per share. That’s compared to the consensus estimate of $6.11 per share for the full year. They expect full year sales to be between $40.5 billion and $41.1 billion, compared to the consensus estimate of $41.19 billion for the year.

“We remain cautious in our planning with regard to the global economy, but are confident that our balanced portfolio mix of short- and long-cycle businesses is well-positioned to deliver on our 2015 commitments that include higher organic sales, continued margin expansion, and double-digit earnings growth,” said Honeywell Chairman and CEO Dave Cote in a statement.

He added that their five-year plan is on schedule and they expect to see growth and productivity improvements due to greater high growth region penetration and benefits from Honeywell’s Gold initiative.

As of this writing, shares of Honeywell were up 1.4% in premarket trading following this morning’s earnings report.

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