Honeywell tops analysts’ estimates for earnings and revenue in Q2

Honeywell International Inc. (NYSE: HON) said on Friday that its sales and profit came in lower in the second quarter, but the decline was not as sharp as expected. The company warned that the COVID-19 crisis is likely to keep sales under pressure, especially in its oil and gas, and aerospace businesses. Schlumberger also reported to have swung to a loss in Q2 on Friday.

Shares of the company tanked more than 3% on market open on Friday. At £117.54 per share, Honeywell International is currently 15% down year to date in the stock market after recovering from an even lower £81.25 per share in March. Learn more about how to choose winning stocks.

Honeywell’s Q2 financial results versus analysts’ estimates

According to FactSet, experts had forecast the company to print £5.70 billion in revenue in the second quarter. In terms of earnings per share (EPS), they had estimated 95 pence. In its report on Friday, Honeywell topped both estimates posting a higher £5.85 billion in revenue and 99 pence of adjusted earnings per share in Q2. Honeywell said earlier this week that it will shut down its Rockford Eclipse plant.  

At £840 million, the American multinational conglomerate said that its net income in the second quarter came in significantly lower than £1.20 billion in the same quarter last year. On a year over year basis, its sales were also reported 19% lower on Friday.

The Charlotte-based company generated £1.99 billion of sales from its aerospace business in the recent quarter that marks a 28% decline on an annualised basis but tops £1.89 billion of FactSet consensus.

In its report on Friday, Honeywell also highlighted that its sales from performance materials and technologies contributed £1.74 billion to its total quarterly revenue. Sales in this segment also saw a 19% decline versus the comparable quarter of last year but were reported stronger than the analysts’ estimates of £1.71 billion.

Other prominent figures in Honeywell’s earnings report

Other prominent figures in Honeywell’s earnings report on Friday include £1.20 billion of revenue (1% decline) from safety and productivity unit and £920 million worth of sales from building technologies (19% decline). Safety and productivity sales were better than expected, while sales from building technologies missed the experts’ forecast.

Honeywell performed fairly upbeat in the stock market last year with an annual gain of about 35%. At the time of writing, the Charlotte-based multinational conglomerate has a market cap of £82.47 billion and a price to earnings ratio of 17.26.