Honeywell Q3 outlook: Sales likely to jump 7-11% organically, adjusted EPS to be up 4-9%

(Representative image: Reuters)

Honeywell, the US-headquartered global provider of integrated automation and software solutions, on September 9 released its outlook for the third quarter (July-September) of 2022, stating that it sees the company's sales jumping by seven to 11 percent on-year organically, and the adjusted earnings per share (EPS) rising by four to nine percent.

The sales during the quarter is expected to be in the range of $8.9-9.2 billion, Honeywell said, adding that the segment margin during the same period is likely to be 20.9 to 21.2 percent, which will either be 30 basis points (bps) down as compared to the year-ago period or remain flat.

The adjusted EPS, during Q3, is being seen at $2.10 - $2.20, which will be up by four to nine percent as compared to the corresponding period in the past fiscal, it said.

For the full-year period, Honeywell sees organic sales amounting to $35.5-$36.1 billion, which will mark a jump of five to seven percent. The segment margin during the same period is expected to be 21.3-21.7 percent, which will be up by 30-70 bps.

The adjusted EPS for the full-year period is being seen at $8.55 - $8.80, which is higher by six to nine percent as compared to the previous fiscal.

In the second quarter (April-June), Honeywell had reported sales growth of 4 percent, or 7 percent excluding the impact of lower COVID-mask volumes and the wind-down of operations in Russia.

The operating margin had contracted by 20 bps in Q2 to 17.9 percent, "primarily due to an additional charge related to Russia", the company had said. The segment margin had expanded by 50 bps to 20.9 percent.