Honeywell Q3 Profit Tops Estimates; Confirms Full-year EPS Guidance

(RTTNews) - Honeywell (HON) reported third-quarter earnings growth of 10% when normalized for tax, reaching the high end of its EPS guidance range. On 1% core organic sales growth, segment margins expanded 190 basis points driven by new product introductions, key process initiatives, continued productivity improvements, and the benefits from ongoing restructuring projects.

The company also confirmed its full-year EPS guidance at approximately $6.10, representing estimated full-year earnings growth of approximately 10%. For the full year, the company now expects sales of $38.7 billion. The company previously expected full year sales to be in the range of $39.0 billion to $39.6 billion.

Honeywell CEO Dave Cote Looking, said: "Looking ahead to 2016, we're planning for a continuation of the slow growth macro environment, but we expect to deliver continued margin expansion and earnings outperformance driven by our balanced portfolio, relentless seed planting in new products and technologies, High Growth Region penetration, over $300 million of funded restructuring, and the deployment of our key process initiatives."

For the third-quarter, net income to company rose to $1.26 billion, or $1.60 per share from $1.17 billion, or $1.47 per share, last year. Earnings per share (at 26.5% tax rate) was $1.57, for the quarter.

On average, analysts polled by Thomson Reuters expected the company to report profit per share of $1.55 for the quarter. Analysts' estimates typically exclude special items.

Revenue decreased year-over-year to $9.61 billion from $10.11 billion. Analysts expected revenue of $9.85 billion for the quarter. Sales for the third quarter were up 2% on a core organic basis, and were down 2% reported driven by the unfavorable impact of foreign currency and the Friction Materials divestiture.