Honeywell enjoys ‘strong start to 2017,’ as Q1 earnings beat estimates

Honeywell reported a strong first quarter of 2017, announcing Friday that its normalized earnings per share were up 11 percent, beating analyst estimates.Honeywell reported a strong first quarter of 2017, announcing Friday that its normalized earnings per share were up 11 percent, beating analyst estimates.

The Morris Plains-based conglomerate said in a news release that its earnings per share, normalized for tax, came in at $1.66, 2 cents above its guidance and 4 cents above the consensus analyst estimate quoted by Yahoo! Finance. That figure was up 11 percent from the first quarter of 2016, the company added.

Reported earnings came in at $1.71 per share, up 10 percent from the year-earlier period.

“Honeywell reported a strong start to 2017, with over 2 percent organic sales growth, 70 basis points of segment margin expansion and free cash flow of nearly $800 million that was more than six times greater than 2016,” CEO and President Darius Adamczyk said in a prepared statement. “… Each of our businesses contributed.

“The commercial aftermarket within aerospace and the global distribution business within home and building technologies remained strong. In performance materials and technologies, robust demand for Solstice low-global-warming products drove double-digit organic growth in advanced materials,a nd improving conditions in the oil and gas industry bolstered ongoing strength in UOP. In safety and productivity solutions, demand for warehouse solutions and industrial safety products enabled growth in the quarter.”

Sales were flat on a reported basis, the company said, and up more than 2 percent on an organic basis. The difference was attributable to currency translation, as well as a business spinoff and a unit divestiture, it added.

“Our diversified portfolio, coupled with the investments we’ve made over the past several years, drove our excellent performance in the first quarter,” Adamczyk said. “As a result of our performance, we are raising the low end of our full-year guidance by 5 cents.”

The company now expects full-year 2017 earnings of $6.90 to $7.10 per share. That would be a 7 to 10 percent increase over the prior year.