Honeywell’s second-quarter EPS
Honeywell (HON) reported its Q2 2018 earnings today, before the market opened. HON’s adjusted EPS rose 18% YoY (year-over-year) to $2.12 from $1.80, beating analysts’ estimate of $2.01 significantly. Its EPS were boosted by higher sales, better operational control over expenses as a percentage of sales, and aggressive share buybacks.
In the second quarter, Honeywell’s revenue grew 8.3% YoY (year-over-year) to $10.91 billion, beating analysts’ estimate of $10.81 billion. Its revenue grew across all segments, led by Safety and Productivity Solutions and Aerospace.
Stock price reaction
Honeywell’s strong growth prompted it to revise its fiscal 2018 guidance upward, to revenue of $43.1 billion–43.6 billion from $42.7 billion–$43.5 billion, and EPS of $8.05–$8.15 from $7.85–$8.05. HON expects free cash flow of $5.6 billion–$6.2 billion in fiscal 2018. We’ll soon release a more detailed analysis of HON’s Q2 2018 earnings. Investors can indirectly hold Honeywell through the PowerShares Aerospace & Defense ETF (PPA), which has invested 6.9% of its portfolio in Honeywell.